The Design of the Securities Market in Zambia

The SEC is responsible for, amongst other roles: licensing all capital market operators (such as Stockbrokers Zambia Limited); registration of publicly traded debt and equity financial instruments; authorisation of collective investment schemes; and investor protection.

The Zambian securities market is deliberately designed to operate as a central market in that all registered securities are required to trade on a recognized stock exchange and licensed players/intermediaries are also required to transact on a recognized stock exchange This effectively means that an over the counter market (OTC market) does not operate in Zambia. The central market structure is intended to enhance liquidity and provide for efficient price formation and price discovery.

The Structure of the LuSE Market

If a company has 50 shareholders or more, it is deemed a public company and required to register its shares with the SEC – this is mandatory. Companies incorporated as public companies, but having less than 50 shareholders may seek registration with the SEC if they wish. The SEC may if necessary, deem a company publicly tradeable, and request it to be registered.As per the Act, all registered shares must trade on a recognised stock exchange. Therefore, registration directs companies to be traded on the LuSE. And such companies trade on the unlisted tier of the LuSE referred to as the Quoted Tier or the second tier of the LuSE market.

The LuSE is a self-regulatory organization (SRO) and administers its own set of regulations termed the Listings Rules. Companies that satisfy the Listing Rules and meet the set criteria will be admitted to the Official List of the LuSE provided they have secured a registration with the SEC in the first instance. The Official List constitutes the top tier of the LuSE market and therefore represents all companies that are formally listed on the LuSE Consequently, the LuSE operates a two-tier market structure (i.e. listed and quoted shares) arising from the fact that the securities market is designed as a central market by the Securities Act.

Therefore, companies that have secured a registration with SEC but not yet listed trade their shares on the second tier whilst those that have secured SEC registration and subsequently secured admission to listing trade on the top tier.

The top tier or main board or Official List consists of listed companies which are primarily the larger and mature companies operating in Zambia.

The second tier is intended for the smaller, emerging and growth phase companies.


Whether you want to invest in on the Quoted or Listed markets of the LuSE, the brokerage and trading services of SBZ are available to assist and plan your investments accordingly.

The LuSE is a Modern Stock Exchange

The LuSE is a modern exchange and from inception in 1994 has operated with a Central Share Depository ( CSD ) which holds all shares as electronic book entries ( dematerialized ) and enables the LuSE to settle all trades within 3 days of trading ( T+3 rolling settlement cycle).