Ghana Stock Exchange issues Over-the-Counter Market Rules for Unlisted Securities
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Ghana Stock Exchange issues Over-the-Counter Market Rules for Unlisted Securities
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In 2023, the Securities Exchange Commission (SEC) issued the Securities Industry (Over-The-Counter Market) Guidelines 2022 (the OTC Market Guidelines) to regulate the operations of OTC markets and issue licences to operators of OTC markets.
An OTC market is a decentralised market outside traditional stock exchanges where securities (which are not listed on any stock exchange) are traded.
Public companies whose securities are unlisted are able to trade those securities on an OTC market.
On the back of the OTC Market Guidelines, the GSE has established an OTC market and issued rules dated February 2024 for the admission and trading of securities on its OTC market (OTC Market Rules). The OTC Market Rules provide, among others, the conditions, processes and fees for the admission of securities on the GSE’s OTC market and the reporting and disclosure requirements for issuers whose securities are admitted on the market. Securities traded OTC will settle through the Central Securities Depository system.
By issuing the OTC Market Rules, the GSE hopes to provide a fair, orderly and efficient market in the trading of unlisted securities. The GSE’s OTC market will also provide, among others, the following key benefits to issuers and investors:
- access to the public markets for unlisted public companies, which may be unable to meet stringent listing and ongoing compliance requirements of a stock exchange;
- introduction of more instruments into the market;
- depth in the capital markets and broader access to capital and liquidity; and
- access to the capital markets for start-ups with good potential.
The OTC Market Rules have been effective since 1 February 2024. The GSE launched its OTC market on 26 June 2024, making it the third equities market (and the fourth market) operated by the GSE.
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