Firms listed on PNGX can buy PNG listed businesses: Commission

The National Business

By SHIRLEY MAULUDU
THE Securities Commission of Papua New Guinea (SCPNG) aims to make it mandatory for companies planning to acquire PNG listed businesses that they should first be listed on the PNG National Stock Exchange (PNGX).
Acting executive chairman Robert Minak said this was one of a list of priorities that SCPNG was working on following removal of bottlenecks and uncertainty at the commission. “The next phase would ordinarily be to progress the mandate of the commission, more so in the context of building the fundamentals of the SCPNG with the ultimate goal of growing our capital markets,” he said.
Minak said among the commission’s immediate priorities was to conclude the work of building the fundamentals in a three-pronged approach. They are:

  • THE administrative systems of the SCPNG. For example, capacity building, office systems and logistics;
  • ESTABLISHING regulatory infrastructure of the SCPNG. For instance, the regulations, capital market registry, liaison with the self-regulatory organisations to make the stock market accessible to more Papua New Guineans, introduce rules relating to debt securities such as bonds and derivatives.

“Here, we would also suggest policy pointers to the government suggesting that regionally listed companies who need regulatory approval from PNG to acquire PNG-based companies or overseas listed companies who seek to buy PNG-based interests must be encouraged to list on the PNGX”; and,

  • SCPNG will seek to build the market interface systems where it sets up infrastructure (physical, digital or otherwise) designed to regulate the market, monitor market manipulation and insider trading.
    “To give it a push start, we are working with the PNG National Stock Exchange (PNGX) in creating a small to medium enterprise (SME) exchange, which will operate with relaxed rules,” he said.
    Minak said the debt securities market would come online shortly.
    “We need technical people that understand the sophistication of the industry so we are able to respond proactively to our stakeholders’ needs and to execute our mandate in an effective and robust fashion,” he said.