13 July 2012

Ghana: SEC Calls for the Setting Up of Investor Relations Units

The Securities and Exchange Commission (SEC), the regulator of Ghana's capital market has called on listed companies on the Ghana Stock Exchange (GSE) to set up investor relations units to enhance relations among them and their various investors.

The Director General of SEC, Mr. Adu Anane-Antwi made the call in a day's forum for listed companies on the Ghanaian bourse in Accra.

The setting up of the investor relations units, he added would help provide timely information regarding their financial performance and other relevant information to local and foreign investors as well as potential ones.

He told the managers of the companies that poor governance structures had the tendency of affecting the stock market as well as the economy.

Mr. Anane-Antwi entreated them to endeavour to disclose their financial performance information to update their investors about their performance.

He identified the cost of disclosure, capacity to disclosure, lack of appreciation of company secretary, unwillingness to disclose, among others as the major challenges inhibiting disclosure of financial information in the country.

Speaking on a topic 'Continuing Listing Obligations', the Managing Director of the Ghana Stock Exchange, Mr. Kofi Yamoah added fully disclosure of financial information to the public would help investors make informed investment decisions.

According to him, certain information might reasonably be expected to a material effect on the market activity and price of listed securities, so disclose.

Mr. Yamoah advised companies to give information on financial results, quarterly, audited, and others; upcoming shareholders meeting; and dividends including amount, qualifying date and payment date to the public.

A senior manager of OAK Partners Limited, Mr. Patrick Kingsley-Nyinah observed that "most of the listed companies do not use the GSE to market themselves well. We need to use the Exchange as a platform to let investors know the day-to-day activities of the companies".

He used the forum to appeal to listed companies operating on the GSE not see security analysts as inquisitors of information, but rather partners in information dissemination.

The Executive Director of GSE Securities Depository (GSD), Mrs. Melvina Amoafa said GSD had designed information that could be packaged to the benefit of the listed companies as well as investors.

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