The Dar es Salaam Stock Exchange (DSE) has amended its trading rules, effective 2nd June 2025 to improve market liquidity, transparency, and investor protection. Key changes include new definitions for block trade and closing price, updated price caps, and revised trading hours.
Tanzania’s Dar es Salaam Stock Exchange (DSE) announced amendments to its 2022 DSE & Central Securities Depository (CSD) Rules, effective from 2nd June 2025, aiming to enhance market liquidity, price transparency, investor protection, and operational efficiency. The amendments were presented on 26th May 2025 by the Chief Internal Auditor of the DSE, Mecklaud Edson, during a Zoom stakeholders’ meeting. The revised rules affect 11 DSE and CSD framework parts, including listing procedures, definitions, trading processes, and investor safeguards. The amendments are as follows:
• The definition of a block trade has been updated to refer to a single lot of any security with a minimum value of TZS 250 million, up from TZS 200 million. A single lot has been defined as the number of securities comprising an order from one buyer to one seller. This aims to eliminate price manipulation and ensure fair execution of large trades.
• The definition of price cap limit has been introduced as a fixed percentage of the previous closing price to limit daily fluctuations.
• The price cap is 15% for securities with a market capitalization below TZS 1 trillion, 5% for those above TZS 1 trillion with over 2 billion issued shares, and 2% for those with fewer than 2 billion issued shares. An additional 5% variation is allowed for five working days following a corporate action.
• A new definition of closing price has been adopted, calculated as the volume-weighted average price (VWAP) of trades executed during the trading session, provided a minimum of 100 shares is traded per transaction. This replaces the previous rule that relied on a percentage of issued shares and aims to resolve the issue of price stagnation.
Read more at: https://www.tanzaniainvest.com/finance/capitalmarkets/dse-trading-rules-amendments-2025
