Moves by the Ghana Stock Exchange(GSE) to demutualize its operations to convert the exchange into a publicly-listed entity similar to companies currently trading on the local bourse has progressed significantly, the Chairman of the Council of the GSE, Mr. Sam Mensah has disclosed.
The process of demutualization, which is currently practiced by many stock exchange markets, is aimed at strengthening exchange markets to independently raise fresh capital to fund its activities such as expansion and modernization.
In addition, such moves are targeted at giving the bourse autonomy from government interference while injecting private sector expertise and efficiencies into its operations.
Speaking at the sidelines of the Annual General Meeting of the Ghana Stock Exchange, the Chairman of the Governing Council, Dr Sam Mensah, explained that an expert committee has been put together to study a the roadmap designed to roll out the demutualization.
According to him, the process has reached a significant stage that will require experts to study before it is implemented.
“A few years ago there was a comprehensive consultancy report which created the road map for demutualising the exchange and currently the exchange has put together an expert committee to look at that report and prepare a step by step implementation plan for the demutualization,” he said.
Dr. Mensah stated that all is set for the committee to commence its work after which it will present its final recommendation on how it will be implemented.
“The committee is just about to start meeting. We expect that there will be significant progress in demutualization in the next year. Most markets are demutualizing so it is important we do same,” he stressed.
He maintained that the GSE has no option but to move quickly to implement the move since most countries in the region have started demutualization since it brings positive outturn to markets.
He stated that the move will not only boost the profitability of the GSE but will make it attractive to companies that are not already on the market.
Source: citibusinessnews
