On January 29, the Georgetown Chamber of Commerce and Industry (GCCI) called for an overhaul of the Guyana Stock Exchange (GSE), based on reports on the body’s operations.
In a statement released by the GCCI, they noted that the GSE has a significant role to play in assisting businesses in Guyana to overcome financial hurdles. They are expected to facilitate a transparent and efficient marketplace for companies to grow through investments.
However, they also noted the lack of necessary infrastructure, technological advancements, and regulatory framework at the GSE limits the financial health of businesses, and ultimately hampers their growth potential.
The GSE’s “substandard functioning” was also blamed for the sale of stocks in breach of the company’s by-laws.
In the statement, the GCCI contended that “With Guyana being on a revolutionary growth trajectory, it is imperative that the GSE be rehabilitated to keep pace with the rapid growth and development taking place all across the nation.”
The GCCI calls on the Guyana Association of Securities Companies and Intermediaries Inc., and Guyana Securities Council (GSC) to effect the modernization of GSE infrastructure, to allow for the incorporation of technologically advanced best practices.
In a recent annual meeting held by Banks DIH, shareholders expressed concerns over the way the shares of public companies are being handled at the GSE.
Chairman of Banks DIH Limited, Clifford Reis, recommended that the GSC and the GSE establish an odd-lot market where less than 1,000 shares could be traded without affecting the overall share value of companies.