Membership:
The Ghana Stock Exchange as a public company limited by guarantee has no owners or shareholders as such, but members are either corporate bodies or individuals.
There are three categories of members, namely Licensed Dealing Members, Associate Members and Government Securities Dealers (PDs). An LDM is a corporate body licensed by the Exchange to deal in all securities. An Associate member is an individual or corporate body which has satisfied the Exchange's membership requirements but is not licensed to deal in securities. A PD is a corporate body, which is approved by the Bank of Ghana and registered by the Exchange to deal only in government securities.
Regulatory Framework:
GSE operates within a set of Rules, including membership, listing, trading, clearing & settlement and depository. These are collectively reffered to as the GSE Rule Book.
Membership Rules:
These deal with the criteria for membership of the GSE, code of conduct or ethics for members, among others.
Listing Rules:
These prescribe, among others, criteria for listing securities (local and external), continued obligations of the listed companies as well as Take-over and merger procedures.
GSE Automated Trading (GATS) Rules:
These govern electronic trading done by the brokers whether on the Floor, from Dealers offices or through the secured internet.
Clearing and Settlement House Rules:
These are to ensure timely clearing and settlement of trades electronically.
Trading Method:
GSE uses an electronic trading platform called the GSE Automated Trading System (GATS).
Trading Days:
Trading takes place every working day.
Trading Hours:
Pre-opening period: 9:30 to 10:00 hrs (GMT)
Market opens for continuous trading: 10.00 hrs to 15.00 hrs (GMT).
Clearing & Settlement:
Settlement of trades is done electronically using a web based application. Settlement occurs three business days (T+3) after the trade date. The System allows for mutual settlement of trade on T+0 or T+1 basis. On settlement dates shares are moved automatically to client’s accounts in the depository system and the brokers settlement account debited.
GSE Securities Depository (GSD):
The GSE has set up a wholly -owned subsidiary called GSE Securities Depository Company Limited. The key objective is to offer depository services to complement the Exchange's automated trading, clearing and settlement systems.
As a result investors on the Exchange must open securities account with the Depository through thier Stockbrokers.
Under the automated trading and settlement system, an investor cannot sell nor buy securities on the market if heor she has no securities account.
Surveillance:
The Securities and Exchange Commission (SEC) carries out regular inspection of Licensed Dealing Members' operations and books. Brokers are also required to submit returns to GSE.
Listing:
GSE has two categories of listing. These are 1st and 2nd. The second list is essentially aimed at small and medium sized enterprises (SMEs)
Types of Securities that can be listed
- Shares (preference or equities);
- Debt in the form of corporate bonds (and notes), municipal bonds (and notes), & government bonds (and notes); and
- Close-end unit trusts and mutual funds
Market Index:
Starting from January 4, 2011, the GSE publishes two indices, namely the GSE Composite Index (GSE-CI) and the GSE Financial Stocks Index (GSE-FSI)
GSE Composite Index (GSE-CI)
The calculation of the GSE Composite Index (GSE-CI) is based on the volume weighted average closing price of all listed stocks. All ordinary shares listed on GSE are included in the GSE-CI at total market capitalization, with the exception of those of listed companies which have shares listed on other markets. The GSE-CI is a market capitalization weighted index, i.e. each constituent is given weight according to its market capitalization. The base date for the GSE-CI is December 31, 2010 and the base index value is 1000.
GSE Financial Stocks Index (GSE-FSI)
This index have its constituents as listed stocks from the financial sector including banking and insurance sector stocks. All ordinary shares of the financial stocks listed on GSE are included in the GSE-FSI at total market capitalization, except for those of stocks which are listed on other markets. The base date of GSE-FSI is also December 31, 2010 and the base index value is 1000.
Pocedures For Non-Residents Investing Through The Stock Exchange
There are Sixteen licensed stock broking firms which have set up systems for serving non-residents. Their names ,addresses, and other contacts details are provided on this site. Please contact any of the stockbrokers directly.
Custodial services for non-resident investors are provided by
Barclays Bank of 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: 233-21-666331-3; and
Stanbic Bank Ghana Ltd. P. O. Box CT 2344, Cantonments, Accra. Tel: 233-21-250071-5.
Investor Protection Provisions
The Exchange has various provisions in its rules which have been designed to protect the investor in addition to what the securities regulator(SEC) provides.
Under the SECURITIES INDUSTRY LAW PNDCL 333 (1993), as amended, the apex regulatory body in the securities market is the Securities and Exchange Commission and is functions include: maintaining surveillance over the securities business to ensure orderly, fair and equitable dealing in securities:
- registering, licensing, authorizing, a Stock Exchange, investment advisors, securities dealers, etc.
- protecting the integrity of the securities markets against any abuses arising from the practice of insider trading.
