Cabinet approves 'junior stock market'

Published: Monday October 6, 2008

Jamaica is hoping to establish a stock exchange for small and medium-sized enterprises (SMEs) within the next three to six months, according to Finance Minister Without Portfolio, Don Wehby.

A steering committee has been set up to implement a Cabinet decision on the establishment of the so-called junior stock market.

Jamaica’s Ministry of Finance announced Cabinet’s approval for the setting up of the Jamaica Stock Exchange Junior Market, an initiative that will be done in conjunction with the Jamaica Stock Exchange.

The ministry said the Junior Stock Market would provide an easily accessible capital market facility for SMEs, those which will have market capitalisation of between $50 million and less than $500 million, who otherwise could not raise capital through commercial loans because they lack the necessary security. Investors would be allowed to put capital into legitimate small-and medium-sized companies listed on the market.

Wehby said the move was critical to stimulating growth in the Jamaican economy by developing the small-and medium-sized enterprises sector.

“I am excited about its potential for stimulating economic growth while creating employment opportunities,” he said.

“The initiative serves to broaden and deepen our local financial market while stimulating the development of SMEs.”

The committee is to comprise representatives from the Ministry of Finance and the Public Service, the Financial Services Commission (FSC), the Registrar of Companies, the Institute of Chartered Accountants Jamaica, the Accountant General and the Ministry of Industry, Commerce and Investment.

Wehby said he was optimistic that the new market would improve transparency and good governance in a sector which employs the greatest percentage of the employed labour force.


Source: Trinidad Guardian Newspapers
http://www.guardian.co.tt/business2.html