Background
Shares for companies that are listed on the Malawi Stock Exchange (MSE) are available for trading by the members of the public. In order for one to buy or sell those shares, one goes through stock broking firms registered by the MSE. The Malawi Stock Exchange, and the registered brokers are all based in Blantyre. It therefore becomes difficult for persons outside Blantyre to access the stock market as they have to rely on either the National Post Office or courier services to send their share certificates or indeed travel all the way.

Objective
To bring the stock market closer to the people by enabling them to buy and sell shares through the nearest National Bank of Malawi branch.

The product allows easy access to investors to trade in shares without necessarily travelling to Blantyre where the brokers and the Malawi Stock Exchange are based. It addresses investors’ fears of losing their share certificate and incurring courier charges.

How the Product works:
.Customers wanting to buy or sell shares listed on the MSE would transact at any branch of National Bank which will have current market prices of shares.
.Buyers of shares would deposit money for buying shares while sellers would deliver the original share certificate at the branch.
.Customers would fill Stockbrokers Malawi Limited (SML) forms at the branch instructing SML to carry out the transaction.
.The NBM branch sends a summary of share transactions to SML electronically at the close of business.
.SML updates its sell or buy order book on the basis of the information received in readiness for a trade.
.NBM branch sends the relevant documentation to SML to finalise the share transfers.
.Upon trade, SML settles according to customer’s preferred procedure – including the customer collecting share certificate at the same branch.
.For existing and potential NBM customers; their branch becomes a one-stop shop to conclude their investment transactions including share trades.