Q FM Africa's Modern Radio
The Private Sector Development Association (PSDA) has commended President Michael Sata for encouraging local enterprises to list on the Stock Exchange.
In his speech to open the 4th meeting of the 11th session of Parliament on Friday last week, President Sata directed Secretary to the Cabinet Roland Msiska to operationalise the industrial development corporation and ensure that state-owned enterprises list on the stock exchange.
PSDA chairperson Yusuf Dodia says the President’s idea is very good as this is what is hoped for the country’s economy that its stock exchange becomes the platform for trading of stocks and shares, and for raising capital to facilitate growth for local companies.
Mr. Dodia has however observed that if the country’s stock exchange is to become attractive for local enterprises to list on it, it needs to show that there is something positive that can be given to the business if they list.
He has told Qfm news that means that the rule for listing has to be changed as current rule for listing on the country’s stock exchange demands that a company has to be in business for at least three years and should have three years of audited accounts.
Mr. Dodia says such a rule which does not apply for many local enterprises therefore needs to be changed.
He says in addition there is need to have a secondary market where stocks and shares can be readily sold by companies business who want to offload there shares from the stock exchange.