Business News of Friday, 6 October 2017
The Securities and Exchange Commission (SEC) will soon announce a new capital requirement for companies listed on the Ghana Stock Exchange.
The move follows recent announcement by the Bank of Ghana which also increased its capital requirement from 120 million cedis to 400 million cedis for banks in the country.
Speaking to Citi Business News, the Director General of the SEC, Rev. Daniel Ogbamey Tetteh explained that the commission will go to the market to undertake an assessment and come out with a figure.
“There is a procedure we have to follow before we announce the capital market requirement that we are going to propose. Basically, we will get to the market with what our proposals are based on. What capital is required by the different market operators to be able to operate effectively on the capital market,” he stated.
Rev. Ogbamey Tetteh pointed out that the regulator will take into consideration the views of players in the industry.
“After we propose it to the market, we will take their feedback and then after we hear from them then will make a determination as to the new level, he said adding that “without a solid financial background or without the necessary capital base you find it difficult to be effective as capital market operator”.
He stressed that there is the need to increase the requirement to strengthen companies on the bourse.