just for startups
Exchange to ease
IPO conditions and cost
The Central bank (BDL) said it has plans to create a stock exchange dedicated exclusively to startups.
“The BDL step comes in line with Law 161 of the Capital Markets Authority (CMA), which allows the creation of different kinds of stock exchanges,” said Sami Saliba, Executive Board Member of CMA. “Such stock markets usually have to be created by a business group like financial institutions, consulting companies, or even a pool of investors related to a specific industry,” he said.
According to this law, CMA has the power to grant a license to establish a stock exchange and determine its by-laws, with specific conditions of creation, appointments and tasks of the members of its board of directors.
CMA also has the power to set the rules that listed companies should abide by, while conducting their activities within the stock exchange. It will oversee and control the established stock market.
“The main purpose of BDL is to ease the conditions and costs of Initial Public Offerings (IPOs) of startups,” said Saliba. “The IPO may be harder for startups who want to be listed, through the Beirut Stock Exchange (BSE), because they are so small,” he said.
Reported by Leila Rahbani
Date Posted: Nov 25, 2014