The Cyprus Stock Exchange (CSE) commenced its operations on the 29th of March 1996. 

The address of the CSE is:

54, Grivas Dhigenis Ave., P.O.Box 25427,
CY-1309 Nicosia,
Cyprus

Tel: (357) 2 668782
Fax: (357) 2 668790
email: cyse@logos.cy.net
 

The CSE Council

The Council of the CSE was appointed by the Council of Ministers in December 1993 in accordance with the Law, and was initially charged with the responsibility of preparing detailed Regulations which would govern the operation of the CSE. 

The Council of the CSE is responsible for the management of the Exchange and for the implementation of its policy. More specifically, the Council supervises the operation of the Exchange and has exclusive authority over the management and administration of its assets, in accordance with the provisions of the Law and the Regulations. 

Members of the Council
 

Dinos Papadopoulos	Chairman
Loucas Louca	Vice-Chairman
Symeon Kasianides	Member
George Korfiotis	Member
Antonis Zampas	Member
Stavros Kremmos	Member
Paris Lenas	Member

Members of the CSE

The Cyprus Securities and Stock Exchange Law and the Regulations issued in accordance with this Law, provide for the registration of its Members (brokers and brokerage firms). 

Specified qualifications are required for acceptance of an applicant for registration as a broker, or a stockbroker' s representative: they must be citizens of the Republic, possess a degree of a recognised university or be members of a recognised professional body, they must have successfully passed the examination on the legal and regulatory framework and the practices of the Stock Exchange, and must have one year' s practical experience. 

Moreover, as regards physical persons they can set up themselves as Members registered in accordance with the provisions of the Companies Law. 

Such companies must satisfy a strict list of prerequisites, i.e. they must have a minimum net capital according to the kind of brokerage activities they wish to be engaged in, and major shareholders, members of the Board of Directors and other officials of such companies must be persons of good repute. 

The Members of the CSE are governed in the conduct of their activities through a comprehensive set of Regulations. These Regulations cover inter alia:

• Contact of members towards clients. Their primary duty is to serve their clients to their best interest in the framework of the Law in good faith, and in accordance with the Stock Exchange Regulations. 
• Contact of members amongst each other, 
• Keeping of proper books and accounts, 
• Compliance with the general instructions of the Council, 
• Power of the Securities Commission to collect information, and its power of access and investigation, as well as entry and search procedure and imposition of administrative fines, 
• Minimum net capital and its constituent elements, 
• Suspension of licences, 
• Provision of credit facilities and, 
• Submission of accounts. 

There are specific requirements for allowing a public company to list its securities on the Stock Exchange. 

The following are amongst the basic requirements: 

• the issuer must have been incorporated and must operate in accordance with the Law of his country of incorporation, and have authority to issue securities to the public, 
• the issuer must propose the listing of securities with an expected total market value of at least CY£600.000, 
• the issuer must propose the listing of securities which are freely transferable, 
• a shareholder must not control directly or indirectly a percentage of more than seventy per cent of the share capital of the issuer, and at least twenty five per cent of the share capital must be satisfactorily spread to the public at large, 
• the issuer must safeguard that shares issued are offered to the existing shareholders in proportion to the holding of each in the issuer' s capital. 

The CSE has signed a contract with Computershare Systems (formerly Financial Market Software Consultants) in order to fully computerise its trading as well as its back office procedures (clearing and settlement). 

The automated trading system has started operation in May 1999. 

Computerised trading has taken place at the first stage using a floor. The aim is at a later stage to proceed to floorless trading. 

The CSE will maintain a computerised Register of all listed stocks that will replace the Registers held at present by listed companies. All stocks will be dematerialised and the transfer of securities will be performed through an electronic book-entry system. Corporate actions will also be undertaken by the CSE. 
 

Listings

At present , 93 securities from 41 companies are listed on the CSE. These include shares (fully paid), partly-paid shares, rights, warrants and corporate bonds. 
 

Members

20 firms employing 37 professional brokers, are Members of the CSE. 
 

Association of National Numbering Agencies (ANNA)

In June 1997, the Cyprus Stock Exchange was accepted as a member of the Association of National Numbering Agencies (ANNA). The CSE within the powers granted to it by ANNA has assigned its own ISIN codes (International Securities Identification Number) and CFI codes (Classification of Financial Instruments) based on the ISO Standards 6162 and 10962 respectively as prescribed by ANNA. A complete listing of the assigned codes can be downloaded in MS Word document format: isin.zip(554K)
 

Trading Hours

10.30 am -12.00 p.m., local time (GMT+2). 

The Regulations provide for severe punishment of any Members and employees of the Stock Exchange who violate Regulations relating to the protection of investors. 

Furthermore, the Stock Exchange Law provides for the establishment of a Compensation Fund called Joint Comperation Fund Securing Stock Exchange Transactions. The aim of this fund is to protect investors in the event of financial collapse, or whenever a Member of the Exchange is unable to meet his obligations to its principals or to third parties. 
 

Insider dealing

In order to prevent insider dealing, the House of Representatives will pass a law entitled "Insider Dealing Law", which will provide further protection to the investors. 
 

Short selling

Short selling at the CSE is prohibited. A transaction cannot be cleared and settled unless valid certificates of ownership are provided (or certain other documents accepted by the Stock Exchange). 
 

CSE Index

The Cyprus Stock Exchange prepares the CSE-All Share Index, together with the following sectoral indices: 

• Banks 
• Approved Investment companies 
• Insurance companies 
• Industrial companies 
• Tourist companies 
• Commercial companies 
• Other companies 

The basis of the index (100) is the 29th of March 1996, opening day of the Cyprus Stock Exchange. 
 

Commissions:

As from 2nd January 1998, by a decision of the CSE council, commissions are freely negotiable between the brokers and their clients and there is no fixed minimum commission. However, in the case that no agreement (written or oral) is made, between the broker and his/her client, the following rates shall apply:
(1) for trading in shares

• CY£1 to CY£1.000 1,25 % 
• CY£1.001 to CY£100.000 1% 
• CY£100.001 and above 0.3% 

In addition to commissions, all trades are charged at a 1,5 per thousand, payable only by the buyer. This transaction charge is collected by the CSE as a fee for its services. 
 

Clearing and settlement of transactions

According to CSE Regulations, Members must complete every transaction at latest three days after the transaction has taken place. 

Within a day after the transaction has been completed the CSE issues a certificate of transfer. Following that, the company has the obligation to issue a new certificate for the buyer and deliver it to the CSE within five working days. Following this, the Member has the obligation to collect the certificate from the CSE and deliver it to the buyer. 

As a result of the above procedure, the buyer is able to have his certificate within nine days from the day on which the transaction takes place. 

If the investor wishes to sell before the nine day period, he can do so on the strength of a certificate provided by the Member certifying that the investor is the owner of the securities sold. 

Fines are imposed on the responsible party when the above timetable is not complied with. 
 

Foreign investment in the Cyprus Stock Market.

There are certain conditions, imposed by the Central Bank of Cyprus, in respect of foreign investment. Cypriot immigrants are treated in a different way compared to foreign investors. The following rates apply: 
 

Listed companies	Cypriot immigrants	Foreign investors
banks	15%	6%
all other listed companies	no limitation	49%

Cypriot immigrants and foreign investors, together can not hold more than 15% of the share capital of any listed company in the Banking Sector. 

The process of acquiring shares by foreigners is simple enough and it is more or less similar to that of the locals. 

Payment for any transaction by foreign and Cypriot immigrants alike should be made through external accounts. 
 

Through Our associates CLR Stockbrokers Ltd., SIS offers the following Services:

. 
                            
                                  DEALING IN SHARES 
                                  FUND MANAGEMENT 
                                  SHARE VALUATION 
                                  PRIVATE PLACEMENTS 
                                  ADVICE ON AND SPONSORS OF FLOTATIONS 
                                  COMPREHENSIVE RESEARCH AND ANALYSIS WORK 
                            

Through our associates in Zurich Switzerland, Von Graffenried, Von Burg, Kaufman, Winzeler, Asset Management Limited (GRZ):

                              
                            
INVESTING IN THE MAJOR CAPITAL MARKETS IN 
                                 
TIME DEPOSITS 
GOVERNMENT & CORPORATE BONDS 
SHARES 
DERIVATIVES 
FOREIGN EXCHANGE TRANSACTIONS 
MUTUAL FUNDS 
INVESTING IN PERIPHERAL AND EMERGING MARKETS IN 
MUTUAL FUNDS SPECIALISING IN THOSE MARKETS 
                                 
The above services are offered to all our foreign as well as expatriate Cypriot clients who maintain funds abroad.