Rev. Daniel Ogbarmey Tetteh, second from left, addressing the media[/caption]
The Securities and Exchange Commission (SEC) says it has completed all the processes and it’s now set to increase the minimum capital requirement for market operators before 2019.
The Director General of SEC, Rev. Daniel Ogbarmey Tetteh said his outfit has had the necessary engagements with all the relevant stakeholders as he prayed for full compliance.
He was speaking to journalists on Wednesday to announce the Commission’s forthcoming capital market conference. Scheduled for November 21 and 22, the conference themed “Ghana Beyond Aid: The Role of the Capital Market,” would be addressed by Vice President Dr. Mahamudu Bawumia and other key speakers.
Rev. Ogbarmey Tetteh indicated that it has become necessary to increase the minimum capital requirement to further sanitise the capital market and boost public confidence.
“I’m confident that before the end of this year, we will be able to issue the minimum capital requirement to all our licensees,” he noted.
According to him, market operators would have grace period of 12 months to comply with the new requirement. Fund managers who fail to meet the requirement set by the Commission would be sanctioned, he remarked.
He mentioned some factors that influenced the upward adjustment of the minimum capital requirement.
“We looked at what does it take to operate in the industry, the different category, what kind of human capital, what kind of financial capital, what kind of information system do you need. We looked at what pertains in the industry in other jurisdiction. It was a number of things that informed the upward revision.”
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Rev. Daniel Ogbarmey Tetteh (right) and his deputy Paul Ababio[/caption]
Currently, there is a flat rate of GH₵150,000 for security exchanges and GH₵100,000 for the rest.
Mr. Paul Ababio, Deputy Director General at the Securities and Exchange Commission, however told 3news.com the adjustment would not be across board.
The minimum capital requirement would be based on business models of market operators, noting that the financial resource requirement of an operator would be a key influencer too.
“We are not moving it to the level of the banks, no, we are moving it to between 500,000 cedis and [a maximum of] 10 million cedis range for the various industries and various businesses in the sector.”
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