Stockbrokers

Tanzania Stockbrokers

Stockbrokers in Tanzania are supervised by the Capital Markets and Securities Authority (CMSA).

Brokers play roles on both primary and secondary capital markets in Tanzania. Their roles on the primary market include:

• – Selling of securities to the public on behalf of issuers
• – Advising investors about issuances
• – Providing investment advisory services to issuers
• – Act as sponsoring brokers

The law requires issuers of securities to the public to appoint a sponsoring broker who is a Licensed Dealing Member (LDM) of Dar es Salaam Exchange (DSE).

In the process of preparing an issuance, sponsoring brokers are the main link between the issuer on the one hand and CMSA and DSE on the other.

Sponsoring brokers have to ensure that issuers fulfill the CMSA’s and DSE’s requirements for issuing and listing securities.

They also test the market to establish the demand for the securities being offered to ensure a successful issuance.

Stockbrokers’ roles on Tanzania’s secondary market include:

• – Acting as agents, they buy and sell securities on behalf of their clients at a commission
• – Providing advisory services with or without a fee is a continuous service provided by all brokers on the market

Tanzania Dealers

Dealers undertake the same functions as brokers, but on top they may also trade on secondary markets as principals.

This means that they may buy and sell securities on their own behalf thus acting as market makers on the secondary market.

Currently (2016), there are 11 dealers/stockbrokers of the Dar es Salaam Stock Exchange (DSE).

Tanzania Stockbrokers/Dealers List