Oct 2008 Financial News

Cabinet approves junior stock market

Oct 02, 2008

After getting Cabinet approval for the establishment of a stock exchange for small and medium sized enterprises (SMEs), finance minister without portfolio Don Wehby is optimistic that a steering committee will ensure implementation within the next three to six months.

A release yesterday from the finance ministry made announced that Cabinet has approved the implementation of the Jamaica Stock Exchange Junior Market, an initiative that will be done in conjunction with the Jamaica Stock Exchange.

The Junior Stock Market will provide an easily accessible capital market facility for SMEs, those that will have market capitalisation of between $50 million and less than $500 million, who otherwise could not raise capital through commercial loans because they lack the necessary security. Investors would be allowed to put capital into legitimate small-and medium-sized companies listed.

Wehby feels that this initiative is critical to stimulating growth in the Jamaican economy by developing the small-and medium-sized enterprises sector.

"I am excited about its potential for stimulating economic growth while creating employment opportunities," he said. "The initiative serves to broaden and deepen our local financial market while stimulating the development of SMEs."
A steering committee will be established to ensure implementation within the next three to six months. The committee will comprise representatives from the Ministry of Finance and the Public Service, the Financial Services Commission (FSC), the Registrar of Companies, the Institute of Chartered Accountants Jamaica, the Accountant General and the Ministry of Industry, Commerce and Investment.

Wehby is also optimistic that this venture will improve transparency and good governance in a sector that employs the greatest percentage of the employed labour force.


Source:
Jamaica Observer
Wednesday, October 1, 2008

http://www.jamaicaobserver.com/magazines/Business/html/20080930T200000-0500_140783_OBS_CABINET_APPROVES_JUNIOR_STOCK_MARKET_.asp