Ghana Stock Exchange revising rules for OTC market

The Ghana Stock Exchange has disclosed that is it is in the process of revising its rules for the introduction of guidelines for the Over-The-Counter (OTC) market.

An Over-the-Counter (OTC) market is termed as a decentralised avenue in which participants can trade stocks, commodities and currencies.

Chairman of the GSE’s governing council, Anselm Ransford Sowah speaking at an Annual General Meeting said the proposed changes are currently before the Securities and Exchange Commission (SEC) for approval.

“The GSE is in the process of revising its rules to keep in touch with global market trends and industry practices. Of particular is the introduction of over-the-counter rules which is currently under review by the Securities and Exchange Commission.”

“When approved, the OTC rules will enable the shares of unlisted companies to be traded on platforms provided by the Exchange, encouraging transparency and price-discovery on the market,” he explained.

Anslem Sowah however pointed the development seeks to enable shares of unlisted companies to be traded on platforms provided by the GSE.

Participants on the OTC platform can also trade other instruments directly between them without a central exchange or broker.