Maputo, Mozambique, 14 June – The Mozambique Stock Exchange (BVM) has approved regulations concerning the secondary market, a vital step to enable exchange transactions of securities issued by small and medium-sized companies, reports the Maputo-based daily Noticias.
The new regulations determine conditions from admission to listing and permanence of securities in the secondary market, information to be supplied to respective authorities and to the public, and the charges for admitting and maintaining listings.
Preparations for this segment of the capital market for small and medium-sized companies have been under way for several years.
Last year, BVM signed agreements with the Institute for State Participations and Management (IGEPE) and with the Federation of Mozambican Economic Associations (CTA) with a view to its implementation.
Stock Exchange sources said at the time that the three institutions’ involvement was essential for awareness-raising, education and training of all capital market players, from the public to the professional classes, as well as companies and financial institutions.
The admission and listing of small and medium-sized companies is basically another means for financing, with more interesting conditions than those currently offered by commercial banks.
Since it was founded in the last 1990s, the Mozambique Stock Exchange has only been transacting capital for large enterprises. (macauhub)