Through a General Notice in the Government Gazette, the Minister of Finance suspends fungibility of dually listed counters: Old Mutual, PPC and Seedco International. The move implies that investors can no longer transfer shares of these counters across stock exchanges. 
HISTORY CHECK:
28 May 2008 we suspended fungibility of shares. 7 months later we dollarised! We are going full circle.
allafrica.com/stories/200805…
28 May 2008 we suspended fungibility of shares. 7 months later we dollarised! We are going full circle.
allafrica.com/stories/200805…
FUNGIBILITY(def)
If Company A is listed on more than one stock exchanges, shareholders are able to transfer shares across the stock exchanges in which it is listed. The process assumes that the share should have one price across(Law of One price or Purchasing Power Parity)
If Company A is listed on more than one stock exchanges, shareholders are able to transfer shares across the stock exchanges in which it is listed. The process assumes that the share should have one price across(Law of One price or Purchasing Power Parity)
However due to exchange rate disparities, investors can make an arbitrage (riskless) profit by buying and selling the same share across different stock exchanges.
