Government holding back progress on securities market

Government’s delay in appointing commissioners to the Securities and Exchange Commission (SEC) is creating a huge problem for players in the industry particularly banks which are listed on the stock exchange.

Due to the absence of commissioners for the regulator of the securities market, loads of applications awaiting approval are still lying on the desk of the SEC.

Various companies are in limbo, particularly foreign banks which have applied for right issues in order to increase the minimum capital to 60 million dollars before the year ends.

Their applications have been lying there while time ticks away simply because government has not appointed commissioners to the SEC, the sole authority to approve such applications.

Besides the foreign banks, local banks and other companies have also applied to do right issues while others want licences to operate in the capital market.

Market watchers say the situation is unpardonable as it also means the securities market where people’s investments are channelled has been without proper regulation since government fired the former commissioners close to six months.

Source: Joy Business/Myjoyonline.com