The African Improvement Financial institution Group and the Securities and Trade Fee (SEC) have signed a $400,000 grant settlement to develop a risk-based supervisory resolution for the Ghana capital market.
The grant, from the African Improvement Financial institution’s Capital Markets Improvement Belief Fund, will finance the supply of technical help and capability constructing for the SEC, the markets regulator, and the Ghana Inventory Trade.
The challenge will improve the SEC’s institutional capability and readiness to transition from a compliance-based to a risk-based supervision strategy for the securities market.
It’s going to additionally allow the event and streamlining of coverage and regulatory frameworks for pooled funds, and assist the broadening of market devices by means of the introduction of merchandise comparable to asset-backed securities.
Reverend Daniel Ogbarmey Tetteh, Director-Common of the SEC, recommended the African Improvement Financial institution for supporting the event of a risk-based resolution to bolster the Fee’s capability to meet its mandate.
The aims of the challenge align with the priorities of the Financial institution’s Nation Technique for Ghana, which envisages measures to stimulate capital market improvement and unlock monetary assets that may advance Ghana’s industrialization, the personal sector and infrastructure improvement.
“The collaboration with the Securities and Trade Fee to advertise an enabling regulatory and supervisory atmosphere with diversified monetary market merchandise and devices is well timed. This assist demonstrates the Financial institution’s want for a deepened and broadened monetary system – a driver of funding and financial development in Ghana,” stated Ahmed Attout, Supervisor of the Financial institution’s Capital Markets Improvement Division.
The challenge will profit capital market contributors in Ghana, together with securities issuers and buyers and in addition assist to broaden accessible merchandise and constructions for financial savings and funding.
Mr Ekow Afedzie, Managing Director of the Ghana Inventory Trade, expressed his appreciation to the Financial institution and famous that the challenge had come at an opportune time when the inventory market deliberate to introduce new merchandise to deepen the market and enhance liquidity.
“Thus, the introduction of the brand new merchandise will enhance investor confidence and obtain the last word objective of constructing the Ghana Inventory Trade a most popular funding vacation spot within the sub-region,” Mr Afedzie stated.
The Securities and Trade Fee will cooperate intently with the Ghana Inventory Trade and different market stakeholders to implement the challenge.