Some stakeholders in the financial sector have expressed worry over the delay on the part of the president to announce a new board of directors for the Securities and Exchange Commission (SEC).
Under the laws governing the securities industry, the board is mandated to vet and approve the listing of bonds, equities, registration of investment advisory firms, asset management firms, and the creation of mutual funds.
By this, it is impractical for the commission to operate smoothly without a board.
Some reports suggest that the commission may have missed an opportunity to raise millions of cedis in the first six months of the year as activities slow down on the bourse.
Speaking to Citi Business News, a former Director General of the Commission, Dr. Adu Anane-Antwi described the situation as a setback in boosting investor confidence; hence the president must announce a new board immediately.
“People come to the market based upon market situation and they are advised by clients and advisors that if you want to raise money at the market and be successful this is right time. Assuming I have been advised that I should go to the market in March to raise funds, and by March I have gone to the market and the SEC tells me that we cannot approve your document because we don’t have a board, then there is a challenge,” he lamented.
He explained that raising funds on the bourse is always done according to time and strategy.
He pointed out that denying an investor the right time could kill their confidence and cause some challenges to companies listed on the market.
“The board may come at a time that I think the market is not right for companies to raise the funds. The opportunity should be there so that anytime somebody wants to raise funds he can raise the funds but not to delay the companies,” he said.
As it stands, Dr. Anane-Antwi maintained that it is practically impossible for serious activities to take place on the market since almost all activities are managed and approved by the board.
By: Lawrence Segbefia/citibusinessnews.com/Ghana