Brokerage firms face March deadline to recapitalize

Brokerage firms operating in the securities industry have up to March to shore up their capital.

The Securities and Exchange Commission has directed them to increase the capital from 100,000 Cedis to One million Ghana Cedis.

The move is part of ongoing reforms in the financial industry which started some 10 years ago. Already banks have undergone the first phase of the recapitalization program while the insurance industry will complete its own this year.

According to managers of the capital market, the re-capitalization of licensed investment banks is expected to make the brokerage firms stronger and compete for big ticket business.

Though some players want a gradual increment the regulators think the quantum leap is irreversible.

Meanwhile, Databank Brokerage for the third year running led the pack in terms of market share of the top 10 brokers in Ghana.

It has a market share of 25.61 percent followed by EDC Stockbrokers with a market share of 15.45 percent.

IC Securities, African Alliance and Stanbic Bank Ghana Securities came 3rd, 4th and 5th respectively with a market share of 11.27, 10.22 and 6.16 percent respectively.