- Published on Thursday, 05 July 2012 01:36
- Written by ABDUEL ELINAZA
- Hits: 1211
THE final adjustment of two regulations to pave way for setting up of the Enterprise Growth Market (EGM) has been completed to allow for the second market to start before the year end.
According to the Capital Markets and Securities Authority (CMSA), the amendments have been sent to the government printer and are expected to be gazetted in the coming edition. CMSA's Principal Public Relation Officer Charles Shirima told the 'Daily News' yesterday that the adjustment have been done on capital requirement and business restriction sections.
"The capital restriction is no longer there. It has been adjusted," Mr Shirima said, adding, "EGM advisory firms are now allowed to do other businesses as well." Before the amendment, EGM advisors were required to put a down payment capital of 2bn/- in cash and were not allowed to carry out any other businesses apart from EGM.
The restriction raised concern, with stakeholders arguing that it was inapplicable given the fact that the EGM is a new undertaking. Stakeholders instead suggested for insurance bond equivalent to the said capital amount. Mr Shirima said the four nominated advisors- Nomads- that were selected last year through open public tender, will be licensed to officially start their role as lead advisors of the EGM.
"CMSA will invite other potential Nomads to bid for the job once the new regulations are gazetted.We believe that some failed to apply due to the legal restrictions," Mr Shirima said. The new firms will join the existing four, with the idea being to make the second market more vibrant and with a wider reach area.
He said: "It's our hope that the new (riskier) market will be in operation before this year's end." One of the firms already approved as nomads is Enterprise Growth Market Advisors (EGMA) whose shareholders include former CMSA chief executive Fratern Mboya, Tanzania Revenue Authority's Commissioner General Harry Kitilya and Peter Nyabuti.
The second is TSL Investment with two shareholders namely Moremi Marwa and Tanzania Securities Ltd, while Ernest Massawe is Nominated Advisor Representative (NAR). Others are ARCH Financial and Investment Advisory under Mazengo Kasilati as NAR and a shareholders plus Lyen Msemwa and Joyce Maselle; and Exim Advisory Services where Lalit Kumar Adukia is CEO and George Sawe is NAR, while shareholders are Yogesh Manek and Hanif Jaffer.
Nomads have to act as lead consultants or advisors in corporate finance advisory role, which may include regulating issues relating to corporate finance, for at least the last three years.