View Full Version : SEC pushes for legislation to compel foreign firms to float shares on GSE

Quaiqu Ananse
4th June 2012, 11:27 AM
The Securities and Exchange Commission (SEC) is pushing for a legislation that will compel foreign owned companies in selected industries for five years to float part of their shares on the Ghana Stock Exchange (GSE).

This is expected to be part of licensing conditions such companies who are operating in different sectors of the economy.

Speaking at the West African Investment Conference in Accra, Director-General of the Securities and Exchange Commission, Mr Adu Anane Antwi, said the move is part of an advocacy for capital market and local content policy.

“There is the need for Government to get companies like telecoms, banks, mining and other oil and gas companies to list on the Ghana Stock Exchange”, he said.

According to the SEC boss, the exchange is considering the establishment of an investor protection fund for investors who are not covered by the fidelity fund of the Ghana Stock Exchange.

The fund is to provide protection to investors and ensure market stability.

He said the SEC is also working with securities regulators, exchanges and other stakeholders in the ECOWAS region towards the harmonisation of rules and regulatory frameworks to ensure the integration of our markets. The SEC has also held discussions with WAMI on ways to facilitate the integration of ECOWAS capital markets.

The commission in 2000 commissioned a feasibility studies into the establishment of a commodity exchange in Ghana. SEC is currently working together with the Ministry of Trade to establish the Ghana Commodity Exchange. The SEC is also working with the Ghana Stock Exchange for the introduction of Exchange Traded Funds (ETFs) on the exchange. The rules for ETFs have been approved by the SEC.

The listing of the first EFT on the GSE is currently being worked on.

Page last updated at Monday, June 4, 2012 10:10 AM

Source: http://www.ghanabusinessnews.com/2012/06/04/sec-pushes-for-legislation-to-compel-foreign-firms-to-float-shares-on-gse/