CHAPTER 35 / 55 · Paid
Securities exchange, clearing and trading systems.
Follow the exchange, the clearing house and the trading system as three shops. None of these is a spot commodity market.
Approx. 18 min with exercisesLaw cut-off: 20 September 2026Our approach
By the end of this chapter
- Describe the shop in one paragraph from the first file on the desk.
- Decide the promoter’s next asks: which stay on this letter, which need another paper.
- Keep neighbouring permissions off this desk.
- Cite the enabling section and treat the licence letter as the book.
How this family is grouped
Follow the exchange, the clearing house and the trading system as three shops. None of these is a spot commodity market. Each code below is its own shop: a first file, a week, the asks that need a different paper, then the letter. A quieter label is not a thinner file.
SEC-1.1 Securities Exchange
FSC · SEC-1.1 · Licence
1. IsleExchange Ltd’s shop
IsleExchange Ltd is the desk this chapter is for. Establish, maintain or operate a securities exchange in Mauritius, physically or electronically, only with a securities-exchange licence.
The first file on the desk is this. IsleExchange Ltd will operate an order book in listed shares of Mauritian companies. SEC-1.1 / Securities Act section 9.
Three facts have to stay true of that book. First, the letter is the activity specified. This is a licence under Securities Act 2005, Section 9. A company name is not a permission.
Second, neighbouring papers stay off this desk. Not a spot commodity market (FS-1.24), not a VASP Class S marketplace, and not a clearing facility (SEC-1.2).
Third, the assumptions stay in the file. Fictional exchange. Cut-off 20 September 2026.
Securities Act 2005, Section 9. See the register note · Open the published text ↗.
2. A week with An electronic equities book
Monday. The promoter walks in with “An electronic equities book.” Write the facts before anyone names a code: IsleExchange Ltd will operate an order book in listed shares of Mauritian companies.
Tuesday. The team writes the activity in the words of the licence letter, not the brass plate. Establish, maintain or operate a securities exchange in Mauritius, physically or electronically, only with a securities-exchange licence.
Wednesday. They record what this permission is used for. SEC-1.1 / Securities Act section 9.
Thursday. They write what the letter does not cover. Not FS-1.24 and not VA-1.5.
Friday. They lock the assumptions. Fictional exchange. Cut-off 20 September 2026. The file is ready for the application, not for a slogan on a slide.
The other files on this desk should look like that first one: a named person, a specified activity, and a letter that matches the work. That is what SEC-1.1 is used for. The Act matters when IsleExchange Ltd applies, when the Commission writes conditions onto the letter, and when the same promoter telephones with a different idea.
3. What the same promoter asks next
The facts are fictional. The method is the course: keep the shop you have just watched, and ask which desk is now doing the work.
This licence
An electronic equities book
IsleExchange Ltd will operate an order book in listed shares of Mauritian companies.
Why it fits. SEC-1.1 / Securities Act section 9.
Different paper
The same promoter asks for spot commodity market (FS-1.24)
The slide says the SEC-1.1 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Not FS-1.24 and not VA-1.5.
Different paper
The same promoter asks for VASP Class S marketplace
The slide says the SEC-1.1 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Not FS-1.24 and not VA-1.5.
| The promoter asks IsleExchange Ltd to… | This licence? | Why |
|---|---|---|
| An electronic equities book | Yes | SEC-1.1 / Securities Act section 9. |
| The same promoter asks for spot commodity market (FS-1.24) | No | Keep the neighbouring paper off this desk. Not FS-1.24 and not VA-1.5. |
| The same promoter asks for VASP Class S marketplace | No | Keep the neighbouring paper off this desk. Not FS-1.24 and not VA-1.5. |
4. Papers that sit beside this one
Not a spot commodity market (FS-1.24), not a VASP Class S marketplace, and not a clearing facility (SEC-1.2). Name the other desk when the work changes: a spot commodity market (FS-1.24); a VASP Class S marketplace; a clearing facility (SEC-1.2).
- a spot commodity market (FS-1.24)
- a VASP Class S marketplace
- a clearing facility (SEC-1.2)
Neighbouring codes have their own chapters. Do not import their books into this letter.
5. The letter and the file
The exchange operator. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. Fees as at 1 July 2026: Processing fee Rs 250,000. Status at cut-off: Published market-infrastructure category as at 1 July 2026.
Who may hold it. The exchange operator. Members still need their own dealer licences.
Published criteria. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. They neither derogate from nor restrict the Commission’s statutory powers, and they must be read with the relevant Act, rules, codes and circulars. SEC-1.1 criteria. Market rules, systems and default arrangements belong in the file.
Rules, codes and circulars. CL20260107 for the fee review generally. Variable annual fee remains Commission-determined on this row.
6. How to cite SEC-1.1
| Coordinate | As at 20 September 2026 |
|---|---|
| Directory code | SEC-1.1 Securities Exchange |
| Legal nature | Licence |
| Enabling law | Securities Act 2005 · Section 9 |
| Fees as at 1 July 2026 | Processing fee Rs 250,000. Fixed annual fee Minimum of Rs 500,000. Variable annual fee to be determined by the Commission. Unless the directory states a different conversion rule, USD figures apply only to an applicant for a Global Business Licence or a corporation holding a Global Business Licence. FSC Circular Letter CL20260107 (1 July 2026) records that the replacement fee schedule operates from 1 July 2026 and that annual fees are due by 30 September 2026. A circular does not rewrite the activity this code authorises. |
| Status at cut-off | Published market-infrastructure category as at 1 July 2026. |
The structured library card keeps the same coordinates for search. Open SEC-1.1 in the reference library.
FSC codified list of licences, authorisations, approvals, recognitions and registrations ↗Register noteSecurities Act 2005 ↗Register noteFSC licensing and fees amendment rules 2026 ↗Register noteFSC Circular Letter CL20260107 — review of fees and renewal of licences ↗Register noteFSC rules and regulations directory ↗Register note
SEC-1.2 Clearing & Settlement Facility
FSC · SEC-1.2 · Licence
1. ClearIsle Ltd’s shop
ClearIsle Ltd is the desk this chapter is for. Provide deposit, clearing or settlement of securities transactions only with a clearing-and-settlement facility licence.
The first file on the desk is this. ClearIsle Ltd will clear SEM trades and hold margin. SEC-1.2 / section 10.
Three facts have to stay true of that book. First, the letter is the activity specified. This is a licence under Securities Act 2005, Section 10. A company name is not a permission.
Second, neighbouring papers stay off this desk. Not a securities exchange, not a spot commodity clearing house (FS-1.23), and not a remote custodian recognition.
Third, the assumptions stay in the file. Fictional CCP. Cut-off 20 September 2026.
Securities Act 2005, Section 10. See the register note · Open the published text ↗.
2. A week with A securities CCP
Monday. The promoter walks in with “A securities CCP.” Write the facts before anyone names a code: ClearIsle Ltd will clear SEM trades and hold margin.
Tuesday. The team writes the activity in the words of the licence letter, not the brass plate. Provide deposit, clearing or settlement of securities transactions only with a clearing-and-settlement facility licence.
Wednesday. They record what this permission is used for. SEC-1.2 / section 10.
Thursday. They write what the letter does not cover. Not FS-1.23 and not SEC-1.1.
Friday. They lock the assumptions. Fictional CCP. Cut-off 20 September 2026. The file is ready for the application, not for a slogan on a slide.
The other files on this desk should look like that first one: a named person, a specified activity, and a letter that matches the work. That is what SEC-1.2 is used for. The Act matters when ClearIsle Ltd applies, when the Commission writes conditions onto the letter, and when the same promoter telephones with a different idea.
3. What the same promoter asks next
The facts are fictional. The method is the course: keep the shop you have just watched, and ask which desk is now doing the work.
This licence
A securities CCP
ClearIsle Ltd will clear SEM trades and hold margin.
Why it fits. SEC-1.2 / section 10.
Different paper
The same promoter asks for securities exchange
The slide says the SEC-1.2 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Not FS-1.23 and not SEC-1.1.
Different paper
The same promoter asks for spot commodity clearing house (FS-1.23)
The slide says the SEC-1.2 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Not FS-1.23 and not SEC-1.1.
| The promoter asks ClearIsle Ltd to… | This licence? | Why |
|---|---|---|
| A securities CCP | Yes | SEC-1.2 / section 10. |
| The same promoter asks for securities exchange | No | Keep the neighbouring paper off this desk. Not FS-1.23 and not SEC-1.1. |
| The same promoter asks for spot commodity clearing house (FS-1.23) | No | Keep the neighbouring paper off this desk. Not FS-1.23 and not SEC-1.1. |
4. Papers that sit beside this one
Not a securities exchange, not a spot commodity clearing house (FS-1.23), and not a remote custodian recognition. Name the other desk when the work changes: a securities exchange; a spot commodity clearing house (FS-1.23); a remote custodian recognition.
- a securities exchange
- a spot commodity clearing house (FS-1.23)
- a remote custodian recognition
Neighbouring codes have their own chapters. Do not import their books into this letter.
5. The letter and the file
The facility operator. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. Fees as at 1 July 2026: Processing fee Rs 250,000. Status at cut-off: Published market-infrastructure category as at 1 July 2026.
Who may hold it. The facility operator. Participants have their own permissions.
Published criteria. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. They neither derogate from nor restrict the Commission’s statutory powers, and they must be read with the relevant Act, rules, codes and circulars. SEC-1.2 criteria.
Rules, codes and circulars. CL20260107 for fees generally.
6. How to cite SEC-1.2
| Coordinate | As at 20 September 2026 |
|---|---|
| Directory code | SEC-1.2 Clearing & Settlement Facility |
| Legal nature | Licence |
| Enabling law | Securities Act 2005 · Section 10 |
| Fees as at 1 July 2026 | Processing fee Rs 250,000. Fixed annual fee Minimum of Rs 500,000. Variable annual fee to be determined by the Commission. Unless the directory states a different conversion rule, USD figures apply only to an applicant for a Global Business Licence or a corporation holding a Global Business Licence. FSC Circular Letter CL20260107 (1 July 2026) records that the replacement fee schedule operates from 1 July 2026 and that annual fees are due by 30 September 2026. A circular does not rewrite the activity this code authorises. |
| Status at cut-off | Published market-infrastructure category as at 1 July 2026. |
The structured library card keeps the same coordinates for search. Open SEC-1.2 in the reference library.
FSC codified list of licences, authorisations, approvals, recognitions and registrations ↗Register noteSecurities Act 2005 ↗Register noteFSC licensing and fees amendment rules 2026 ↗Register noteFSC Circular Letter CL20260107 — review of fees and renewal of licences ↗Register noteFSC rules and regulations directory ↗Register note
SEC-1.3 Securities Trading Systems
FSC · SEC-1.3 · Licence
1. BondSys Ltd’s shop
BondSys Ltd is the desk this chapter is for. Operate securities trading systems under section 11.
The first file on the desk is this. BondSys Ltd will operate an alternative trading system for rupee bonds among licensed dealers. SEC-1.3 / section 11.
Three facts have to stay true of that book. First, the letter is the activity specified. This is a licence under Securities Act 2005, Section 11. A company name is not a permission.
Second, neighbouring papers stay off this desk. Not the exchange licence itself, and not a dealer who merely uses a system.
Third, the assumptions stay in the file. Fictional ATS. Cut-off 20 September 2026.
Securities Act 2005, Section 11. See the register note · Open the published text ↗.
2. A week with An ATS for bonds
Monday. The promoter walks in with “An ATS for bonds.” Write the facts before anyone names a code: BondSys Ltd will operate an alternative trading system for rupee bonds among licensed dealers.
Tuesday. The team writes the activity in the words of the licence letter, not the brass plate. Operate securities trading systems under section 11.
Wednesday. They record what this permission is used for. SEC-1.3 / section 11.
Thursday. They write what the letter does not cover. Dealers on the system still need SEC-2 licences. Not SEC-1.1 by default.
Friday. They lock the assumptions. Fictional ATS. Cut-off 20 September 2026. The file is ready for the application, not for a slogan on a slide.
The other files on this desk should look like that first one: a named person, a specified activity, and a letter that matches the work. That is what SEC-1.3 is used for. The Act matters when BondSys Ltd applies, when the Commission writes conditions onto the letter, and when the same promoter telephones with a different idea.
3. What the same promoter asks next
The facts are fictional. The method is the course: keep the shop you have just watched, and ask which desk is now doing the work.
This licence
An ATS for bonds
BondSys Ltd will operate an alternative trading system for rupee bonds among licensed dealers.
Why it fits. SEC-1.3 / section 11.
Different paper
The same promoter asks for the exchange licence itself
The slide says the SEC-1.3 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Dealers on the system still need SEC-2 licences. Not SEC-1.1 by default.
Different paper
The same promoter asks for dealer who merely uses a system
The slide says the SEC-1.3 letter already covers it because the same company, the same officers or the same client are on the file.
Why it does not. Keep the neighbouring paper off this desk. Dealers on the system still need SEC-2 licences. Not SEC-1.1 by default.
| The promoter asks BondSys Ltd to… | This licence? | Why |
|---|---|---|
| An ATS for bonds | Yes | SEC-1.3 / section 11. |
| The same promoter asks for the exchange licence itself | No | Keep the neighbouring paper off this desk. Dealers on the system still need SEC-2 licences. Not SEC-1.1 by default. |
| The same promoter asks for dealer who merely uses a system | No | Keep the neighbouring paper off this desk. Dealers on the system still need SEC-2 licences. Not SEC-1.1 by default. |
4. Papers that sit beside this one
Not the exchange licence itself, and not a dealer who merely uses a system. Name the other desk when the work changes: the exchange licence itself; a dealer who merely uses a system.
- the exchange licence itself
- a dealer who merely uses a system
Neighbouring codes have their own chapters. Do not import their books into this letter.
5. The letter and the file
The system operator. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. Fees as at 1 July 2026: Processing fee Rs 250,000. Status at cut-off: Published market-infrastructure category as at 1 July 2026.
Who may hold it. The system operator. Users still need dealer or other intermediary licences as applicable.
Published criteria. Published licensing criteria on the FSC codified list (consolidation as at 1 July 2026) are guidance. They neither derogate from nor restrict the Commission’s statutory powers, and they must be read with the relevant Act, rules, codes and circulars. SEC-1.3 criteria.
Rules, codes and circulars. CL20260107 for fees generally.
6. How to cite SEC-1.3
| Coordinate | As at 20 September 2026 |
|---|---|
| Directory code | SEC-1.3 Securities Trading Systems |
| Legal nature | Licence |
| Enabling law | Securities Act 2005 · Section 11 |
| Fees as at 1 July 2026 | Processing fee Rs 250,000. Fixed annual fee Minimum of Rs 500,000. Variable annual fee to be determined by the Commission. Unless the directory states a different conversion rule, USD figures apply only to an applicant for a Global Business Licence or a corporation holding a Global Business Licence. FSC Circular Letter CL20260107 (1 July 2026) records that the replacement fee schedule operates from 1 July 2026 and that annual fees are due by 30 September 2026. A circular does not rewrite the activity this code authorises. |
| Status at cut-off | Published market-infrastructure category as at 1 July 2026. |
The structured library card keeps the same coordinates for search. Open SEC-1.3 in the reference library.
FSC codified list of licences, authorisations, approvals, recognitions and registrations ↗Register noteSecurities Act 2005 ↗Register noteFSC licensing and fees amendment rules 2026 ↗Register noteFSC Circular Letter CL20260107 — review of fees and renewal of licences ↗Register noteFSC rules and regulations directory ↗Register note
PAUSE & REFLECT
Check your understanding.
Three questions to make the ideas stick. Your score is saved on this browser; this is a learning exercise, not a qualification.
Follow the sources.
Each title opens the published text. The register note records the edition used for this course.
- FSC codified list of licences, authorisations, approvals, recognitions and registrations ↗ All published category codes, fees, forms and licensing-criteria columns; consolidation as at 1 July 2026 · Register note
- Financial Services Act 2007 ↗ Sections 2, 14, 14A, 16–18, 25, 33, 71A, 72, 77, 77A, 77B, 77C, 78, 79A; Second Schedule Parts I–III; Fifth Schedule · Register note
- FSC licensing and fees amendment rules 2026 ↗ Rule 3 and replacement First Schedule; rule 4 commencement · Register note
- FSC Circular Letter CL20260107 — review of fees and renewal of licences ↗ 1 July 2026 fee review; annual-fee due date 30 September 2026; FSCOne alternative arrangements · Register note
- FSC rules and regulations directory ↗ Consolidated licensing and fees rules; sector-specific rules including Securities (Licensing) Rules and Family Office Rules · Register note
- Securities Act 2005 ↗ Sections 9–11, 29–30, 53, 86, 97–101, 155(2)(xc) · Register note
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