Business News
Minimum capital requirement for capital market players to reach ¢10 million
The minimum capital requirement for all players in the capital market is set to witness some significant increase.
According to the Securities and Exchange Commission (SEC), the new level would be in the range of ¢1 million to about ¢10 million.
Structure of increase
The increment for this sector would be different compared to the banking and Insurance sectors.
This is because unlike, those sectors where there is one level requirement, the same cannot be said for the capital market.
So for instance, financial advisers may be asked to increase their capital to about ¢1 million while fund managers would be asked to increase their capital from the current ¢100,000 to ¢2 million.
According to Commission, the capital increase would also be done base on the risk of a particular institution or call it risk-based capital increase.
Deputy Director General of the Securities Executive Commission, Paul Ababio, tells JoyBusiness this move is to ensure that the sector is well capitalized to manage depositor’s funds, “so depending on the type of business you operate, the capital requirement would be different”.
Timelines
According to the Commission, part of the capital requirement would start this year and they may look at implementing other aspects from next year.
Sources say failure to meet the requirement may result in that firm losing its license or some sanctions.
However, some players in the industry are already expressing concerns about this planned capital increase.
Some of them have told JoyBusiness that government should look a gradual approach rather or a tier system for the players in terms of the capital increase.
Source-MyJoyBusinessNews
Licenses of troubled investment firms could be withdrawn if... – SEC
The Security and Exchange Commission (SEC) has indicated its preparedness to withdraw licenses of the troubled investment firms if it is established that they failed to comply with the required industry laws.
Deputy Director General of the Commission, Paul Ababio told JoyBusiness they need to exhaust all the necessary processes before any action can be taken.
This notwithstanding, Mr Ababio maintains everything would be done in protecting the interest of the investing public.
“We are exploring all the options available to us as at this point; one to ensure a resolution of these issues, and also to protect investors’ interest in the long run as well. So we are doing our best to manage the situation,” he said.
Last week, SEC announced that it has put 10 investment firms under investigations over breaches of the investment laws and complaints from the investing public.
State of the capital market
The announcement by the Securities and Exchange Commission has brought to the fore arguments that the sector is in deep financial crisis with a lot more firms set to go down due to what some people have described as a serious liquidity crisis.
But Mr Ababio told JoyBusiness these are isolated cases and his outfit is working to fully deal with all the issues in the sector to help restore investor confidence.
Source- MyJoyBusinessNews
GSE: Guinness Ghana, GCB make gains in buoyant first week
Activities in the mid-week session which marks the first week of May trading was buoyant with volumes increasing by 48.9 percent.
The gainers were Guinness Ghana Brewery Limited which rose by 1.6 percent to close at GH¢ 2.60 per share; GCB Bank went up by 0.2 percent to end the session at GH¢ 6.32 per share.
According to Nordea Capital Investment Stock Market analysis made available to the Ghana News Agency in Accra, on Thursday, 1,276,995 shares exchanged hands and these were valued at GH¢ 2,536,653.67.
According to the Stock Expert, CAL Bank recorded a block trade in its shares which sent the price dipping. CAL Bank dipped by one percent to close at GH¢ 1.95 per share.
GOIL also fell by 0.8 percent to close at GHC4.86 per share whiles Fan Milk Limited slipped by 0.6 percent to close at GH¢ 17.49 per share.
The Nordea Income Growth Fund was priced at GH¢ 0.4966 with a year-to-date return of 22.86 percent.
Nordea Capital is an investment bank, licensed by the Securities and Exchange Commission and offers a comprehensive range of services in asset management, research and strategy, corporate finance and private equity to institutional, corporate and private clients.
Nordea Capital is dedicated to growing and preserving client assets and building trust, in partnership with financial professionals and institutions worldwide.
The GSE is the principal stock exchange of Ghana. The exchange was incorporated in July 1989 with trading commencing in 1990.
Criteria for listing include capital adequacy, profitability, the spread of shares, years of existence and management efficiency.
Source- MyJoyBusinessNews
We’ll get tougher on listed companies, GSE warns
The Ghana Stock Exchange (GSE) has warned of stiffer punishment for all listed companies that do not comply with its listing regulations.
This follows the compulsorily delisting of Golden Web Limited and Transaction Solutions (TRANSOL) Ghana Limited from the official list of the Accra Bourse effective April 3, 2018.
The exchange has been worried about companies not submitting their quarterly financials, among others, in spite of several promptings.
It has earlier in 2017 suspended Cocoa Processing Company, Transol and Clydestone but later on lifted the suspension.
In a release, the GSE said the decision to suspend Golden Web and TRANSOL were based on Rule 13 of the GSE Listing Rules.
Under Rule 13(1) of GSE’s Listing Rules the GSE said, “The Council may at any time and in circumstances as it thinks fit, suspend or cancel a listing and shall do so to protect investors and to ensure an orderly market”.
Among the reasons for which GSE may delist a company is where the financial situation of the company is significantly threatened, as provided under Rule 13(4)(g) of GSE’s Listing Rules; or where the company consistently fails to comply with GSE’s Rules and directives, as per Rule 13(4)(h) of GSE’s Listing Rules.
The regulators of the financial system, the Bank of Ghana and the Ghana Stock Exchange have recently been tough in order to protect depositors’ funds or shares from going astray.
The Ghana Stock Exchange (GSE) returned 30.51 percent in cedi term for investors to end the first quarter of 2018 on a blissful note.
This made it the best performing stock market among seven African stock markets in local currency term at the end of the first three months of this year.
There are presently about 35 companies listed on the main GSE whilst about five companies are listed on the GAX Market for SMEs.
Source-MyjoyBusinessNews
Digicut announces successful IPO
Digicut Production & Advertising Limited is pleased to announce that it has successfully completed its Initial Public Offer. The Company has allotted 35,672,632 shares of no par value in connection with its listing on the Ghana Alternative Market (GAX).
The offer which opened on March 01, 2018 and closed on March 23, 2018 with 35,672,632 shares on offer at a price of GHS 0.08 per share. A total of 277 valid applications were received for the issue. The listing and first day of trading on the GAX is expected on April 11, 2018.
Note:
Digicut Production & Advertising Limited was established in 2014 as the production and advertising company of Groupe Nduom, catering to advertising needs of its companies. Digicut has been a profitable company since its inception. It was re-registered as a public limited liability company after the decision of the shareholder and Board of the Company to go public and raise funds for its operations in 2017. Digicut Production & Advertising Limited is the first Groupe Nduom Company and the first advertising firm to be listed on the Stock Market since its establishment.
Source- Doobia.com