Demerara Waves Online News- Guyana Riding on the Crest of Truth
Last Updated on Monday, 29 January 2024, 17:13 by Denis Chabrol
The headquarters of the Georgetown Chamber of Commerce and Industry.
The Georgetown Chamber of Commerce and Industry (GCCI) on Monday publicly slammed the Guyana Stock Exchange (GSE) as “substandard” and suggested that its operations were backward and a disincentive to businesses in Guyana.
The lack of necessary infrastructure, technological advancements, and regulatory framework at the GSE compromises the financial health of businesses, restricts their ability to attract investment, and ultimately hampers their growth potential. That the substandard functioning GSE is also resulting in the sale of stocks in breach of a company’s by-laws is also most worrying,” the GCCI said.
A top official of that business organisation declined to say what his chamber planned to do to influence reforms beyond the public call for an overhaul of the GSE. Banks DIH Limited at the weekend said something was wrong at the GSE where share prices were low despite that company’s successes. The company said it has also recommended to the GSE and the Guyana Securities Council that an odd-lot market be put in place to avoid the trade in small numbers of shares affecting the overall share prices of public companies.
The GCCI called on the Guyana Association of Securities Companies and Intermediaries Inc., and Guyana Securities Council (GSC) to prioritise the modernization of GSE infrastructure, with a focus on the incorporation of technologically advanced best practices. That recommendation was made against the backdrop of, according to the GCCI, Guyana being on a revolutionary growth trajectory,
With access to financing being a leading hurdle for many businesses in Guyana, the GCCI said the GSE has a significant role to play in facilitating a transparent and efficient marketplace for companies to raise capital, invest, and grow.
The GCCI said it has been on public record, on multiple occasions, championing the reform of the capital markets and the stock exchange in Guyana.
Meanwhile, Opposition Leader Aubrey Norton last week urged that steps be taken to educate Guyanese about the benefits of investing,
planning ahead for expected life expenses, and the general advantages of making use of the financial system. He recommended that that such education be introduced at the high school level, University of Guyana, and other higher learning institutions, through a deliberate government outreach program.
“The US Federal Reserve highlights that 58% of Americans own stock, often through varied financial products, whereas sadly many Guyanese are not even aware that Guyana has a stock exchange ” he remarked in his 2024 National Budget debate contribution. “Firms will no doubt be encouraged to list on a more well-developed stock exchange, as well as those currently on the exchange benefit,” he said.