Make Dar bourse more vibrant: regulator

Capital markets regulators should work out ways of making Tanzania’s nascent stock exchange market vibrant and capable of aiding growth.

The Chairperson of the Capital Market and Securities Authority, Ms Grace Rubambey said in Dar es Salaam over the weekend that the authority and Dar es Salaam Stock Exchange need to increase investors and products on the stock market to make it more vibrant.

“A vibrant capital market pushes the economy forward at greater speed,” Ms Rubambey said when opening a two-day tailor made workshop, organized by CMSA. “CMSA and DSE should take this as a challenge.

They have to maintain good governance and corporate practice,” she said. 

The workshop dwelt on sharing ideas of United Kingdom’s alternative investment market (AIM) operations that brought together over 200 participants most representatives of DSE’s brokerage firms and, EGM’s nominated advisors (Nomads).

A London, based Bose Consulting Limited (BCL) Mr Simon Brickless, told the participants that the , UK’s AIM was established less than 20 years has so far listed 3,382 firms most SMEs of which 589 are overseas companies.

“The AIM, helped to bridge the funding gap, as previous the main market (London Stock Exchange) was regarded as the market for overseas companies,” Mr Brickless, who was the workshop resources person, said.

In those years, the alternative market has raised over 100 billion US dollars for companies and half of the amount was during in further issues - after the initial public offers. 

“The alternative market is a steeping stone to main market listing…and also generated wealth and employment,” Mr Brickless said.

He cautioned however, the road ahead was bump as not all the companies were going to make it.

“Out of the listed ones, between 3 and 4 per cent failed,” the consultant said when presenting a paper ‘Doing Business as a Nomad. He said some ran into bankruptcy and some were bought out before sinking.

He said a Nomad has every reason to protect the EGM than regulators as if failed to delivery sunk with the firm livelihood while the authority continue to pocket his/her salary. 

“…Nomads has responsible to protecting the reputation of the market,” Mr Brickless said.

A cross-section of Nomad and stockbrokers were pleased of the workshop as it pays to share a common interest with one peer’s though some of the issues might not related, between AIM and EGM.
Source: The Daily News, reported from Dar es Salaam
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