Information for External Residents
INFORMATION BULLETIN FOR NON-RESIDENT GHANAIANS AND FORIGNERS
1. BRIEF HISTORY
The Ghana Stock Exchange was incorporated in July, 1989 as a private company limited by guarantee under Ghana’s company’s code, 1963 (Act 179). The Exchange was given recognition as an authorized Stock Exchange under the Stock Exchange Act of 1971 and commenced trading on November 12, 1990. In April 1994, The Exchange converted into a public company limited by guarantee.
The Ghana Stock Exchange is a private sector initiative and is not funded by government but has enjoyed the support of the Government of Ghana.
2. STRUCTURE
The Exchange is governed by a council with representation from six constituencies: licensed dealing members; listed companies; the banks; insurance companies, money market and allied institutions, as well as the general public. The Managing Director of the Exchange is an ex-officio member of the governing council. The Council sets policies for the Exchange, its functions include regulating trading and settlement and granting approvals for the listing, maintaining public confidence in the market and promoting the Exchange. It has the power to suspend or expel any licensed dealing member that contravenes the rules of the Exchange. The Councils membership includes some of the most distinguished and competent persons in the Ghanaian commerce, industry, finance and public service.
3. OFFICIAL TRADING HOURS
Trading takes place daily from Mondays to Fridays at 9:30 am to 12:00 noon.
4. MARKET CAPITILIZATION
Market Capitalization is an indication of the value of all the listed companies. As at November 30, 2007 the total market capitalization of the Exchange was GH ¢12.17 Million (US $ 11.63 Million).
5. TRADING VOLUME
Volumes traded are regularly updated on this website. You may visit the “Market Research” column for some statistics.
6. INDEX
GSE All-share index is the main index of the Exchange. The CAL Stock Index (CALSI) shown on this site also tracks the performance of all listed companies.
7. TYPES OF SECURITIES LISTED
- Ordinary Shares - 33
- Preference Shares -1
- Debt Securities
- Corporate - 3
- Government
- 2 years - 58
- 3years - 49
- 5years - 2
8. ORDINARY SHARES LISTED
- Accra Brewery Ltd. (ABL)
- AngloGold Ashanti Ltd. (AGA)
- Aluworks Ltd. (ALW)
- Ayrton Drug Co. Ltd. (AYRTN)
- Benso Oil Palm Plantation Ltd. (BOPP)
- British American Tobacco Ghana Limited. (BAT)
- CAL Bank Ltd. (CAL)
- CFAO Ghana Ltd. (CFAO)
- Camelot Ghana Ltd. (CMLT)
- Cocoa Processing Co. Ltd. (CPC)
- Clydestone (Gh) Ltd. (CLYD)
- Ecobank Ghana Ltd. (EBG)
- Enterprise Insurance Co. Ltd. (EIC)
- Ecobank Transnational Inc. (ETI)
- Fan Milk Ltd. (FML)
- Ghana Commercial Bank Ltd. (GCB)
- Ghana Oil Company Limited (GOIL)
- Golden Web Co. Ltd. (GWEB)
- Guinness Ghana Breweries Ltd. (GGBL)
- HFC Bank Ltd. (HFC)
- Mechanical Lloyd Company Ltd. (MLC)
- Pioneer Kitchenware Ltd. (PKL)
- Produce Buying Company Ltd. (PBC)
- PZ Cussons Ghana Ltd. (PZ)
- Standard Chartered Bank Ghana Ltd. (SCB)
- Sam Woode Ltd. (SWL)
- Starwin Products Ltd. (SPL)
- Super Paper Products Company Ltd. (SPPC)
- SG-SSB Ltd. (SG-SSB)
- Trust Bank Ltd. (The Gambia) (TBL)
- Transaction Solutions Ltd. (Transol)
- Total Ghana Ltd. (Total)
- Unilever Ghana Ltd. (UNIL)
PREFERENCE SHARES
- SCB preference Shares (SCB PREF)
CORPORATE BONDS:
- HFC Series ‘H’ Dollar Housebond
- HFC Series ‘J’
- SCB Medium Term Notes (Series 01)
GOVERNMENT BONDS
Government of Ghana 2, 3, 5-year Bonds
13. TRADING SYSTEM
Trading which is manual is carried on the floor of the Exchange under the Continuous Auction Trading (CAT) system.
14. DELIVERY AND SETTLEMENT/ DEPOSITORY
Settlement is manual but centralized. Currently, the settlement period is T+3 business days. It is on delivery versus payment (dvp) basis and the seller (Stockbroker) of the security is responsible for the validity of all documents delivered. Ghana has a functional Depository. Currently there is a programme in place following the passage of a Depository Bill into law, to migrate all listed corporate securities into the depository. Already all Government debt instruments are in the depository.
15. COMMISION RATES
Trade commissions have been partially liberalized. A minimum of 1.5% and a maximum 2.5 % are charged as commission on the value of shares traded. This is the first stage towards full liberalization in due course.
16. REGULATIONS AFFECTING FOREIGN AND NON – RESIDENT INVESTORS
Under the Foreign Exchange Act of 2006 (Act 723):-
The ten per cent (10%) limit placed on the non-resident foreign investors holdings in securities listed on the Ghana Stock Exchange has been lifted. The 74% limit on the holdings of all non-resident foreign investors in any listed security has also been lifted.
Investors both local and foreign are, however, to note that the acquisition of a ten per cent (10%) stake in any listed banking stock requires prior approval by Bank of Ghana under the Banking Act, 2004 (Act 673).
Non-resident foreigners are permitted to invest in money market instruments of a tenor of three or more years. For the avoidance of doubt, the Government of Ghana listed 5-year Bond due December 2011 is available to non- resident foreigners.
Non-resident companies wishing to issue securities on the local stock market will require prior approval from both the Securities and Exchange Commission and the Bank of Ghana. The transfer or repatriation of proceeds from the sale must be reported to the Bank of Ghana.
The following may be issued with listed securities and may deal in the same through the Exchange:
- Externally resident Ghanaians; and
- Non-Ghanaians resident in Ghana
In relation to investments made by external residents in listed securities, the following shall qualify for full and free foreign exchange remmittability:
- The original capital or principal amounts;
- Any capital gains
- Dividends or interest payments; and
- Related earnings and refunds
17. PROCEDURES FOR NON-RESIDENT INVESTING THROUGH THE STOCK EXCHANGE.
Non-resident investors must first open a brokerage account with CAL Brokers Ltd. The account opening forms and requirements are available on the “Downloads” section on this website’s home page. Investors may choose to trade and settle directly through any of our correspondent banks, or choose a local custodian.
Custodial service for non-resident investors is provided by Barclays Bank Ghana Ltd. Head office, P. O. Box 2949, Accra; TEL: +233-21-664901/4; Merchant Bank (Ghana) Ltd, Merban House, P.O. Box 401, Accra; TEL: +233-21-663331; and Stanbic Bank Ghana Ltd. P.O. Box CT 2344 Cantonments, Accra. TEL: +233-21-250071/-5.
18. INVESTOR PROTECTION PROVISIONS
The market has various regulations, which have been designed to protect investors and these are:
A. MEMBERSHIP RULES:
Stipulate criteria for membership of the Exchange, rules to be compiled with by Licensed Dealing Members in their operations, code of conduct or ethics for members, etc.
B. LISTING RULES:
These rules prescribe among other criteria for listing securities; application procedures; contents of application and prospectus; continued obligations of the listed companies and provisional listing procedures.
Under the SECURITIES INDUSTRY LAW, PNDCL 333 (1993) as amended, the apex regulatory body in the securities market is the Securities and Exchange Commission, Ghana, whose functions include:
- Maintaining surveillance over the securities business to ensure orderly, fair and equitable dealing in securities.
- Registering, licensing, authorizing or regulating the stock exchange, investment advisors, securities dealers, etc.
- Protecting the integrity of the securities market against any abuses arising from the practice of insider trading, etc.
