SEC moves to establish real estate investment trusts in 2013
10/8/2012 2:02:45 PM -
The Securities and Exchange Commission, SEC is stepping up efforts to establish Real Estate Investment Trust by next year. The capital market regulator is currently fine tuning the rules for the investment instruments.
This forms part of the commission's 5-year strategic plan for the developing the capital market.
Director General of the commission, Adu Anane Antwi tells JOY BUSINESS, this is aimed at addressing the funding constraints of the real estate sector by providing the funding for developers as well as prospective home owners.
'The product would help to address the issues of lack capital for real estate sector and bridge the gap between the supply and demand of houses in Ghana' he noted.
The securities law currently allows managers of mutual funds to invest about 10 percent of their net profits in real estate. It however appears the revised Securities Investment Law will remove this restriction.
Mr. Anane-Antwi added that they are also working to introduce new investments products on the capital market in the next few months.
'We are encouraging people to bring in more products once they meet the standard and protect the investor. We ourselves are trying to talk to issuers - a lot of them wanted to come out with new instruments and we are there to help' he added.
Story by Ghana / Joy Business / Emmanuel Agyei / George Wiafe