Barbados Central Bank Increases Stock Exchange Transaction Limit

by Amanda Banks, Tax-News.com, London

23 July 2003

In a recent statement, the Barbados Central Bank announced an increase in the transaction limit imposed on the Barbados Stock Exchange from BDS$3 million to BDS$5 million. For transactions above this, however, approval will still be needed from the Central Bank.

"This limit applies to the purchase and sale of shares and securities cross-listed and cross-traded on any of the stock exchanges in the Member States of CARICOM but does not include government securities," the Central Bank explained, continuing:

"Also, effective July 15, 2003, commercial banks in Barbados may, without the prior approval of the Central Bank, approve applications up to a limit of BDS$250,000 in respect of investment transactions in private sector unlisted equities in CARICOM countries."

The bank added that:

"In all instances, transactions must be supported by adequate documentation. The Bank reserves the right to inspect such supporting documentation from time to time.

"The above-mentioned measures are designed to facilitate investment by Barbados’ private sector in the other member states of CARICOM and to continue the process of exchange control liberalisation."

The new transaction limit on the Barbados Stock Exchange became effective on July 1 2003.

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