The stock Exchange of Mauritius Limited ( SEM ) was established following the Stock Exchange Act of 1988. The Act also set up the Stock Exchange Commission to control and supervise the stock exchange operations.

The Stock Exchange mobilises additional private and corporate savings to finance the increased investment needs of the economy. The SEMDEX- the all shares index - reflects capitalisation based on each listed stock, which is weighed according to its shares in the total market. The Government gives many incentives to companies, which are listed on the Stock Exchange.