Several Developments In The Pipeline For The CSE

by Lorys Charalambous, Tax-News.com, Cyprus

28 May 2003

The Cyprus Stock Exchange (CSE) is planning to create an unlisted securities market in its quest to attract business back to the exchange, which crashed dramatically in 2001.

The unlisted securities market is aimed at companies who cannot at present list on the CSE due to certain restrictions, the exchange chairman, Akis Kleanthous told a press conference recently.

Other initiatives in the pipeline for the CSE include a proposal to split the market into main and parallel markets. To enter the main market, firms will have to show a market capitalisation of at least CYP 7 million in addition to possessing own funds of CYP 8 million. Firms will also need a minimum of 1,000 shareholders and will be required to adopt in full the code of corporate governance, in addition to satisfying volume and profitability criteria.

Once all companies have entered a central registry which is intended to be complete by November 2003, the CSE intendeds to do away with the present system of open outcry and press ahead with a remote trading system. Testing for this is likely to commence in September.

By the end of this year, the CSE is hoping to have completed its blueprint for the long term stability for the exchange.

The share price index soared to dizzy heights in 1999 before crashing to barely 10% of its peak level, ruining thousands of investors who had borrowed to join in the bonanza.

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