Ghana’s Securities and Exchange Commission to increase the capital requirement for capital market operators

The Securities and Exchange Commission (SEC) has disclosed that it will increase the minimum capital requirement for companies operating within the Capital Market by the end of the year.

Director General of the Securities and Exchange Commission, Daniel Ogbarmey Tetteh

The companies include Fund managers, mutual funds, unit trusts, broker-dealers, and custodians.

The Director General of the SEC Reverend Daniel Ogbarmey Tetteh said the fund managers, for example, will have their present minimum capital of Ghc100,000 increased to Ghc2 million.

He added that this move is to help sanitize and strengthen the capital market.

He also indicated that the legal processes to strike out provisions in the existing LI, (1728) which specifies the current minimum requirements are already underway.

“I am very hopeful that we will come out as soon as possible. Because we started having this conversation way back in 2018. We did the market engagements, concluded with all the relevant stakeholders.”

As at December 2018, there were 140 fund managers, 35 mutual funds, 19 Unit Trust, 22 broker-dealers, two securities exchanges, 16 custodians, 15 primary dealers, five trustees, four registrars, five issuing houses, nine investment advisors and one venture capital fund operating in the country.

Total funds being managed by these organizations amounts to Ghc35 billion. Pension funds make up 30.5% of the total sum. Collective investments schemes is 8.5% while managed accounts is 61%.

34% of the funds managed by the companies are held in government bills and bonds while 12% is being invested in listed companies. The remaining funds are spread across banks.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Sonko’s reaction as daughter Sandra Mbuvi goes international

Sonko’s reaction as daughter Sandra Mbuvi goes international

Amazing transformation of 21-year-old man bullied for being born different (video)

Amazing transformation of 21-year-old man bullied for being born different (video)

Eliud Kipchoge's special Sh20,000 earphones he can't live without

Eliud Kipchoge's special Sh20,000 earphones he can't live without

Abel Mutua's movie makes over Sh4M in 5 days

Abel Mutua's movie makes over Sh4M in 5 days

Vera imports Baby Diapers from US, Help rebuild Boniface Mwangi's house & other stories on #PulseUhondoMtaani

Vera imports Baby Diapers from US, Help rebuild Boniface Mwangi's house & other stories on #PulseUhondoMtaani

Sh79,000 per month jobs for Kenyans without degrees

Sh79,000 per month jobs for Kenyans without degrees

Davido and Chioma spotted together for the first time since rumoured breakup

Davido and Chioma spotted together for the first time since rumoured breakup

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

How Janet Mbugua's husband Eddie landed Sh240 million deal with Chinese investors

Diana Marua in jubilation as she celebrates new milestone [Photo]

Diana Marua in jubilation as she celebrates new milestone [Photo]