ghana exchange market

Amended securities law by December

Barring any last minute hitches, the amended Securities Industry bill will be passed before the end of the year, Director-General Legal of the Securities and Exchange Commission (SEC), Alexander Williams, has indicated.

The new securities law will come to address gaps in the regulatory environment and allow for the introduction of new products onto the capital market, and is expected to be passed by end of year.

The securities industry is currently regulated by a 21-year old law that does not suffice for the changing industry trends and new products being developed for the capital market –particularly the real estate sector.

Mr. Williams said at the launch of Edendale Property Plc.’s three-year bond offer on the Ghana Alternative Market (GAX) that passage of the bill will strengthen the SEC’s operational independence to develop the securities market.

He said in his remarks: “The Securities Industry bill is expected to be passed by December this year, and that will mean a fresh wave of developments in the capital market.

“It will also strengthen the operational independence of the industry regulator to supervise activities in the capital market, in a manner that will improve the sector to fast-track economic growth.”

A boost for real estate sector

Passage of the amended bill also signals a boost for the real-estate sector, as it removes the restriction on funds’ investments in the real-estates sector.

Currently, funds can invest only up to 10 percent of their money in the real-estate sector — an area that has become lucrative with the growing population and urbanisation.

The recent boom in the real-estate sector offers an opportunity for capital-market investors to benefit more from investing in the real-estate and construction sector as a way of addressing the country’s housing deficit.

Real estate investments firm Edendale Properties Plc. last week issued a three-year bond to raise GH¢50million on the Ghana Alternative Market (GAX) to clear debts and reinvest in ongoing projects.

The company by this feat becomes the first real estate services firm to source capital from the Ghana Alternative Market, and brings the total number of listed companies to three.

Managing Director of the company, Maamle Totimeh, said listing on the GAX will open new avenues for financing real estate projects in the country.

Mr. Williams encouraged small-sized businesses to resort to the Stock Exchange to raise funds to boost their capital base as well as defray costs.

He said management will work at securing the capital market to enable the sector contribute significantly toward economic growth.