Regulatory framework for OTC market expected in 2021 – GSE

• The GSE says it will regulate the Over-the-Counter (OTC) market this year

•OTC is a decentralised avenue for participants to trade stocks, commodities and currencies

• The GSE is awaiting approval from the regulator

Managing Director of Ghana Stock Exchange has disclosed his outfit will this year begin to regulate the Over-the-Counter (OTC) market pending approval from the regulator.

Ekow Afedzie in an interaction with the Business24 monitored by GhanaWeb explained the move forms part of key initiatives and strategies hinged on creating a platform for various types of securities meant for targeted investors.

“One of the key strategic initiatives is how do we create a platform for various types of securities for different targeted investors. OTC market is one of them. So we have developed the rules and framework, awaiting the approval from the regulator.”

“The OTC market is targeted at companies, that is, public limited liability companies, that have floated shares on the GSE but are not listed. So what the exchange is doing is to create the environment for public companies to trade their unlisted shares on the market.” Afedzie added.

Meanwhile, an Over-the-Counter (OTC) market is termed as a decentralised avenue in which participants can trade stocks, commodities and currencies.

Participants on the platform can also trade other instruments directly between them without a central exchange or broker.