Dominican securities exchange needs a 5-year government ´push´
Santo Domingo.- To develop Dominican Republic´s capital market the country’s securities exchange (BVRD) needs more government and private sector support since it will benefit from the best practices on corporate governance.
BVRD general manager Felipe Amador on Tuesday said despite the securities market´s significant development with a 25 % record growth in the first half, its "imperative" ´for the Government to encourage the issue of shares to motorize development.
"Without government support to develop the capital market we´re taking the long road, the road of waiting for a company to feel altruistic to go to market (…) we need a push, we need a catalyst, capital markets are formed through a catalyst," Amador said, quoted by listin.com.do
The business leader also announce the International Seminar on Valuation and Risk Analysis in Liquid Financial Markets, to be held next Monday,.
He said they’re asking the Government to help them create a market by providing incentives for a limited time (5 years) to spur companies to issue shares.
He listed the major hurdles to grow the securities exchange as establishing corporate governance in companies, aggressive growth plans and governance, support to encourage investors to go to the market.
Amador stressed that to issue shares through the market requires a change in the culture within the companies to adopt the best practices of corporate governance.