The final adjustment of two regulations to pave way
for setting up of the Enterprise Growth Market (EGM) has been completed to
allow for the second market to start before the year end.
According to the Capital Markets and Securities
Authority (CMSA), the amendments have been sent to the government printer and
are expected to be gazetted in the coming edition.
CMSA's Principal Public Relation Officer Charles
Shirima told the 'Daily News' yesterday that the adjustment have been done on
capital requirement and business restriction sections.
"The capital restriction is no longer there. It
has been adjusted," Mr Shirima said, adding, "EGM advisory firms are
now allowed to do other businesses as well."
Before the amendment, EGM advisors were required to
put a down payment capital of 2bn/- in cash and were not allowed to carry out
any other businesses apart from EGM.
The restriction raised concern, with stakeholders
arguing that it was inapplicable given the fact that the EGM is a new
undertaking. Stakeholders instead suggested for insurance bond equivalent to
the said capital amount.
Mr Shirima said the four nominated advisors- Nomads-
that were selected last year through open public tender, will be licensed to
officially start their role as lead advisors of the EGM.
"CMSA will invite other potential Nomads to bid
for the job once the new regulations are gazetted.We believe that some failed
to apply due to the legal restrictions," Mr Shirima said.
The new firms
will join the existing four, with the idea being to make the second market more
vibrant and with a wider reach area.
He said: "It's our hope that the new (riskier)
market will be in operation before this year's end."
One of the firms already approved as nomads is
Enterprise Growth Market Advisors (EGMA) whose shareholders include former CMSA
chief executive Fratern Mboya, Tanzania Revenue Authority's Commissioner
General Harry Kitilya and Peter Nyabuti.
The second is TSL Investment with two shareholders
namely Moremi Marwa and Tanzania Securities Ltd, while Ernest Massawe is
Nominated Advisor Representative (NAR).
Others are ARCH Financial and
Investment Advisory under Mazengo Kasilati as NAR and a shareholders plus Lyen
Msemwa and Joyce Maselle; and Exim Advisory Services where Lalit Kumar Adukia
is CEO and George Sawe is NAR, while shareholders are Yogesh Manek and Hanif
Jaffer.
Nomads have to act as lead consultants or advisors in
corporate finance advisory role, which may include regulating issues relating
to corporate finance, for at least the last three years.
Source: The Daily News,http://www.dailynews.co.tz, reported by Abduel Elinaza
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