Nov 14 , 2024
The Ethiopian Capital Markets Authority (ECMA) has approved a long-awaited directive governing initial public offerings (IPOs) and trading of shares and securities, a landmark step toward establishing a regulated capital market.
The new regulations mandate the registration of securities and require issuers to provide comprehensive prospectuses, including full financial statements, risk factors, and the rationale behind their offerings.
The directive imposes on publicly traded companies heightened disclosure obligations. It introduces regulatory tools such as shelf registrations, allowing companies to raise capital incrementally over defined periods, and implements a book-building process for price discovery.
"This directive represents a foundational shift toward a secure and transparent investment environment," said ECMA Director General Hana Tehelku. "Investors can now rely on standardised, vetted information to make informed decisions."
The Authority’s officials hope to see investors’ confidence boosted, pledging that the directive combats fraudulent activities and insider trading. By setting stringent eligibility criteria and disclosure requirements, they aspire to safeguard the public from misinformation and market manipulations, a trend that has caused thousands lose their investments over the years. Noncompliance leads to monetary penalties and suspensions from trading, measures designed to enforce a culture of compliance among public companies and intermediaries.
"Our regulatory measures set a precedent for an ethical and well-regulated capital market," said Hana.
Fortune News | Jun 14,2020
Featured | Sep 29,2024
Viewpoints | Jun 05,2021
Commentaries | Apr 29,2023
Radar | Mar 06,2021
Fortune News | Aug 12,2023
Commentaries | Aug 21,2021
Radar | Oct 19,2024
Radar | Mar 23,2019
My Opinion | 114602 Views | Aug 14,2021
My Opinion | 110692 Views | Aug 21,2021
My Opinion | 109687 Views | Sep 10,2021
My Opinion | 107512 Views | Aug 07,2021
Nov 9 , 2024
Ethiopia's foreign exchange debacle resembles a tangled web of contradictions and con...
Nov 2 , 2024
Addis Abeba, fondly dubbed a 'New Flower,' is wilting under the weight of unchecked u...
Oct 26 , 2024
When flames devoured parts of Mercato, residents watched helplessly as decades of toi...
Oct 20 , 2024
Central Bank authorities have unveiled no less than six new guidelines to fine-tune t...