To successfully create an alternative market with simplified rules of entry, Ghana Stock Exchange (GSE) has commenced review and amendment of existing legislations.

Already, a draft bill is currently being finetuned, after which it will be sent to cabinet and then to the parliament of Ghana for its passage.

Tagged: “Review and amendment of securities industry act, 1993, the proposed review, according to the Ghana’s Securities and Exchange Commission (SEC) seeks to ensure that securities industry law in the West African country is up-to-date with international best practice.

Specifically, the bill is expected to remove overlaps and plugging of gaps, remove provisions limiting the facilitation of securities market development and ensure that the law is expansive enough to accommodate all forms of securities in the present and future.

Presenting the Ghana’s country report at the just concluded 28th edition of the International Organisation of Securities Commission –Africa and Middle East Regional Committee (IOSCO-AMERC), held in Mombasa, Kenya, SEC Ghana explained that the review is expected to ensure compliance with International Organisation of Securities Organisation (IOSCO) principles.

The review is also expected to strengthen the operational independence of the commission for an effective and efficient regulation of the security industry in Ghana.

The report stated that “the implementation of this development strategy will assist the country to accelerate its economic development and growth, by putting the SME sector at the fore-front of development since it employs a vast majority of the population”.

Meanwhile, the government of Ghana, in its 2012 budget statement, has extended the tax holiday being enjoyed by the GSE for another five years.

Mutual Funds and Units Trust Scheme that invested in stock on GSE were also granted exception from VAT (Value Added Tax) on financial services.

The zero capital gains tax enjoyed by investors on the GSE was also extended for an indefinite period

In the 2012 budget, the government re-echoed its decision to support the GSE to create an alternative market where simplified rules of entry will allow Small and Medium Scale Enterprises (SMEs) to list.

“Rules for the trading of Exchange Traded Funds (ETFs) on the bourse was approved by the SEC. Steps are currently being taken by the GSE and brokerage community to commence trading in ETFs on the GSE.

“The capital market also experienced a boost with the installation of an electronic surveillance system for the market”, said the Ghana country report.

Source: Guardian