Business News of Tuesday, 23 October 2018
The Securities and Exchange Commission(SEC) has set up a monitoring team to ensure all firms abide by the conditions associated with their listing on the Ghana Stock Exchange(GSE).
The commission says it will be cracking the whip on firms that default on their listing obligations.
Already some firms have been given up to December 2018 to get their financial records in order or risk being delisted.
Speaking to Citi Business News at the sidelines of the 2018 Capital Market Week celebrations, Deputy Director General of the Securities and Exchange Commission, Paul Ababio said strong measures are needed to create a robust capital market.
“If you are a regulated entity you have to comply with the regulatory requirement and part of that comes from how you make decisions. For instance from the nature of your portfolio, if a fund manager is investing a very risky portfolio, the board of directors has the responsibility to ensure that the portfolio represents the mandate of the investors”, he said.
He added, “So having a strong corporate governance framework ensures that decisions are made in the best interest of the investing public. So that is part of that framework and also to make the right disclosures to the regulator. Actually in the law as it stands now, Directors of these firms will be held accountable, when they file their returns to us”.
“We will be monitoring them much more closely and we are keeping a record of firms that have defaulted and what actions we will take on them from our findings”, he stressed.
At the end of the third quarter of 2018, the industry’s assets under Management was over 40 billion cedis, which is about 20% of the total GDP, whiles stock market capitalization stood at 66 billion Ghana cedis.
On his part, the President of the Ghana Securities Industries Association, Emmanuel Alex Asiedu said investors should be willing to diversify their investments
“I always advise against investors putting all their eggs in one basket, if you are an investor and you had all your money in one of the banks that has collapsed, you end up losing all your investments, so it is important for investors to diversify their investment by entering into the capital market.”