Page 5 - THE NOTICEBOARD EDITION 62 SEPTEMBER 2020
P. 5
September, 2020 Page 5
SEC to Introduce Crowd Funding in Ghana
promising start-up and
early-stage private
enterprises Crowd
funding is the use of
small amounts of capital
from a large number of
individuals to finance a
new business venture. enterprises, who could
use it to raise needed
It makes use of the easy finance quickly from
accessibility of vast
astute investors willing
Rev. Daniel Ogbarmy Tetteh
Director-General networks of people to put their money into
Securities & Exchange Comm,
through social media and
he Securities and promising new
crowd funding websites
Exchange enterprises without going
to bring investors and
TCommission is far through long, time
entrepreneurs together,
advanced with its plans to consuming regulatory
with the potential to
introduce crowd funding processes, while still
increase
in Ghana. enjoying substantial
entrepreneurship by
protection from financial
expanding the pool of
The capital markets malfeasance on the part
investors beyond the
regulatory institution of the entrepreneurs
traditional circle of
expects to have being invested in.
owners, relatives and
established a framework
venture capitalists,
for its commencement Emmanuel Ashong- Katai,
through a channel that is
imminently and hopes to SEC's head of policy,
much more informally
have it up and running, research and IT explains
structured than the
backed by the requisite that the framework
Ghana Stock Exchange
legislation as early as being designed by SEC
and even the Ghana
next year, despite the aims to ensure that
Alternative Market.
inevitable delays in investors are protected
developing it caused by from fraudulent
This would make it
the impact of the entrepreneurs and would
attractive to micro, small
COVID-19 pandemic. enjoy some level of good
and medium-sized corporate governance,
Crowd funding is a thus limiting their risk
relatively new means exposure to the usual
sourcing both debt and business risks faced by
equity financing for direct investors in
financing private Continue on pg 6
