Opinions of Wed, 12 Sep 20181

SEC sets governance code for listed companies

The Security and Exchange Commission (SEC) expects all players in the stock market to abide by the commission’s corporate governance code as implementation is set to begin.

SEC, the regulatory body for the securities market, said giving confidence to capital, requires some important elements which include, disclosure, transparency, ethical and effective leadership through good corporate governance and adherence to strong regulations.

Speaking to the Goldstreet Business at the inaugural trading of shares by MTN on the Ghana Stock Exchange (GSE) in Accra, SEC’s Director-General, Rev. Daniel Ogbarmey Tetteh, said it was important that listed companies take up the challenge to abide by the rules of disclosure and transparency.

“We’ve shared the draft that we put together with the GSE and we’ve had some feedback and I can confirm that we’ll be issuing it out shortly and we expect various listed companies to go by what has been prescribed in the code,” Rev. Ogbarmey Tetteh entreated.

He explained the move had become necessary as some listed companies, had failed to abide by such existing regulations of the commission.

When it comes to giving confidence to capital, the elements of disclosure, transparency, ethical and effective leadership through corporate governance and a strong regulation must not be compromised, Rev. Ogbarmey Tetteh emphasized, adding, “players and listed companies in the stock market must take up that challenge to win the confidence of investors.”

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Rev. Ogbarmey Tetteh however said, SEC is deepening the urgency as a commission to ensure enforcement of its rules and regulations.

He asked all operators to take note of what is required of them and ensure compliance in the scheme of things in order to have a vibrant market that can attract investors to the market.

Instructively, SEC is emphasizing on three things to ensure that Ghana is positioned as an international financial services hub.

The commission is placing focus on market development, consistent enforcement of regulations and staff education.

SEC believes people in the near future will be patronizing capital market products, and the commission remains committed to providing vibrant and innovative regulatory framework to support market development.

“We’ll also invest in education of market operators and deepening education of our staff. The focus is to churn out knowledgeable staff at various levels of the commission to ensure that investors are protected, not only at the supply side but at the demand side as well,” Rev. Ogbarmey Tetteh reiterated.

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The GSE is the principal stock exchange of the country. It has two categories of listing, namely, the main board and the Ghana Alternative Market (GAX).

Currently, 43, companies list on the GSE, with MTN being the latest addition on September 6, 2018.

Trading summary on the GSE as of Monday, September 10, 2018, indicates a total of 724,583 shares, corresponding to a market value of GHS549, 434.22, were traded.

14 equities participated in trading, ending with two gainers and four losers on that day.

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