Pres Ali instructs review of laws governing local stock market

…modern securities market will foster growth – GCCI

Heeding calls from the local Private Sector and other stakeholders, the Guyana Government has embarked on a review of the legal framework governing the local stock exchange market with the aim of refashioning the system to meet a more competitive financial environment.
This has been revealed by Attorney General and Legal Affairs Minister Anil Nandlall, S.C., during his weekly programme, “Issues in the News”, when he said these efforts are already underway.
“Work has already begun, and the services of experts have been retained. Another person whose expertise is widely respected in the region is being pursued,” Nandlall noted.
According to the Legal Affairs Minister, this move is part of the Government’s commitment to modernise the legislative landscape of the country. In fact, he added that President Dr Irfaan Ali had specifically directed that the stock market laws be revised.

“The President has instructed a review of the relevant law – the Guyana Securities Council Act – and to modernise it, to expand it, and to refashion it to meet the expanding competitive and modern commercial and financial environment developing in Guyana,” the AG has said.
There have recently been calls for an overhaul of the local stock exchange market, with many stakeholders lamenting the outdated nature of the operations in Guyana.
The Georgetown Chamber of Commerce and Industry (GCCI) is one of the bodies leading this demand, having issued a statement just about two weeks ago, urging that the Guyana Stock Exchange be rehabilitated to keep pace with the rapid growth of the economy.
The GCCI had bemoaned that the lack of necessary infrastructure, technological advancements, and regulatory framework at the Guyana Stock Exchange compromises the financial health of businesses, restricting their ability to attract investment and ultimately hampering their growth potential.

Welcome review
On Friday, the GCCI welcomed Government’s announcement that the Securities Industry Act of 1998, which regulates the growth of efficient securities markets and encourages capital formation, would be reviewed and modernized.
“The GCCI is encouraged at the announcement that the Government has already begun engaging with necessary experts to carry out this undertaking. Over the years, the GCCI has consistently been a leading advocate for the modernizing of the local securities market and stock exchange, continuously lobbying for a dynamic and competitive financial environment in Guyana that will benefit businesses, investors, and the economy as a whole,” this Private Sector body has said.
The GCCI went on to outline that, by reviewing the Securities Industry Act 1998, Government is demonstrating its dedication to fostering a more efficient securities market, one that would foster growth and better align with Guyana’s economic trajectory.
“The GCCI looks forward to continuing to work with the Government and relevant stakeholders to further enhance the regulatory framework and ensure the evolution of a transparent and secure securities market that fosters development,” the Chamber said in its missive.
Vice President Dr Bharrat Jagdeo had earlier this month posited that Government is prepared to support the modernisation of the Guyana Stock Exchange, but had reminded that it is a privately-owned mechanism.
Among the public companies with the stock exchange market are Banks DIH, Caribbean Containers, Citizen’s Bank, Demerara Bank, Demerara Distillers Ltd, Demerara Tobacco Company, Guyana Bank for Trade and Industry (GBTI), Sterling Products Limited, and a few others.
Once listed publicly on the exchange, share prices would grow in accordance with the company’s profitability and dividend policy. However, a big problem in the country is that many companies opt to remain private, although there is a greater level of scrutiny attached to being listed publicly. (G8)