The Capital Markets and Securities Authority (CMSA) said in Dar es
Salaam on Wednesday that it will start sensitizing the public and investors
about the alternative stock market, prior to its launching.
The Authority wants to launch Enterprise Growth Market (EGM) segment on
the Dar es Salaam Stock Exchange (DSE) later this year to enable companies to
acquire start-ups capital.
CMSA’s Manager for Public Relations Charles Shirima
said the authority is looking on the training nominated advisors (Nomads) as
well as educate investors and general public before inaugurating the EGM.
“We are also looking forward to train the Nomads to build capacity for
them to assume their roles professionally and effectively in this new and
sensitive segment of the market…on other hand investors and the public need to
understand the EGM and assess the risks before deciding to invest,” he said.
Mr Shirima said the authority has received a number of inquiries from
potential investors even before the alternative market has started to operate.
“In terms of numbers, I cannot be precise as inquiries are not only being
directed to CMSA but also to DSE and to potential advisers and other market
players,” Mr Shirima said, noting that the Nomads are expected to play a great
role in sensitising companies to list through the EGM.
Last September CMSA released names of four firms which had applied for
Nomads role at the stock market.
“Four applications were received and in the
mean time the process of issuing license to the potential advisers is on the
final stage,” Mr Shirima said.
The approval of the firms is set to pave way for
the creation of the EGM, which will have less stringent listing regulations
compared to the main market.
The Nomad firms need to pass six conditions to get CMSA approval which
include having minimum capital of 2bn/-. The Nomads are a new category of
advisors particular to the EGM. Their role is to act as a full time consultant
to startups, small and medium enterprises aiming at raising capital through
EGM.
The Nomad is expected to guide the company from inception all the way
until the company exits EGM to the main investment market segment. They also
acts as the regulator’s eye and ears in the company, thus espousing investors’
confidence in investing in such young enterprises.
Source: The Daily News,www.dailynews.co.tz, reported by Abduel Elinanza
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