Jamaica Stock Exchange
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The Jamaica Stock Exchange is the principal stock exchange of Jamaica. It is known as the JSE. It was founded in 1968 in Kingston, Jamaica and its current executive chairman is Mr Roy Johnson.
[edit] See also
There were four founding members:
Mr. Willard Samms - Annett & Company Limited Mr. Raglan I. Golding - Capital Market Services (Ja) Ltd. Mr. Edward E. Gayle - Edward Gayle & Company Ltd. Mr. Anthony Lloyd - Pitfield Mckay Ross & Co Ltd.
Its principal objectives are:-
to promote the orderly development of the stock market and the Stock Exchange in Jamaica; to ensure that the stock market and its Broker-members operate at the highest standards practicable; to develop, apply and enforce rules designed to ensure public confidence in the stock market and its Broker-members; to provide facilities for the transaction of stock market business; to conduct research, disseminate relevant information and maintain local and international relationships calculated to enhance the development of the Jamaica Stock Market. The Stock Market commenced operations on Monday February 3,1969. Stocktrading is restricted to Broker-members who trade both as agents and as principals. In the latter capacity, certain restrictions apply to transactions between a Broker and his own client.
The Exchange is governed by a Board of Directors which has the following composition:
Mr. Roy Johnson - Executive Chairman, ( Vice President Investments, Victoria Mutual Bldg. Society) Mr. Curtis Martin - Deputy Chairman -Director, Capital & Credit Securities Ltd. Mrs. Rita Humphries-Lewin Chairman, Barita Investments Ltd. Mr. Christopher Berry - Chairman, Mayberry Investments Ltd. Mr. Ed McKie - Chairman, M/VL Stockbrokers Ltd. Mr. Hugh Croskery - Managing Director/CEO, Paul Chen Young & Company Mr. Christopher Williams - Managing Director, NCB Capital Markets Ltd. Mr. Garfield Sinclair - COO, Dehring, Bunting & Golding Mr. Don Wehby - Chairman, First Global Investments Ltd. Mr. Leo Williams - Jamaica Money Market Brokers Ltd. Mr. Donovan Perkins - Pan Caribbean Financial Services Ltd. Independent Directors: Mrs. Faith Stewart Miss Dian Black Mr. Collin Steele Miss Hilary Phillips Q.C. Mr. Garth Kiddoe Mrs. Marlene Street-Forrest - General Manager/Secretary
TYPES OF SHARES QUOTED
The types of securities traded are listed below:
Securities Ordinary/Common shares Preference Shares Preference Share Corporate Bonds
Government Bonds are not listed on the Jamaica Stock Exchange. These are traded by the Bank of Jamaica in an over the counter market.
For the first time in Jamaica's history a US dollar share was listed on the Jamaica Stock Exchange on Thursday, July 18, 1996. This was the Citizens Bank US Dollar Convertible Cumulative Redeemable Preference Share.
OPERATIONS
The Jamaica Stock Exchange operates at 40 Harbour Street, Kingston. The General Manager is responsible for the day-to-day operations of the Exchange.
LISTING
The listing of securities on the Exchange is in the absolute discretion of the Council of the Exchange which may delegate such powers to a duly appointed committee.
The minimum requirements for the listing of a company's securities are:
Total issued share and loan capital of $200,000 or more; the share capital portion being not less than $100,000. In the case of ordinary shares, a minimum of 100 shareholders holding in their own right not less 20% of the issued ordinary capital (such percentage being not less than $50,000 nominal value) excluding the holding of one or more controlling share. Companies incorporated or Registered in Jamaica may be listed by one of the following methods:
Prospectus Issue: an offer to the public by or on behalf of a company at a fixed price; Offer for Sale: an offer to the public, by or on behalf of a third party at a fixed price. Offer by Tender: an offer to the public by or on behalf of a company or a third party by tender; Placing: an offer through broker-members of the Exchange to sell the securities of a company to the public; Introduction: where none of the company's securities is being offered to the public. Trading
Since January 2000 The Jamaica Stock Exchange has had an automated trading platform, called Sunrise. The back office operations which involves clearance and settlement was automated with the establishment of the Jamaica Central Securities Depository in June 1998. Some of the benefits of automated trading are: Greater efficiencies through increased accuracy and increased processing speed and lower operating costs. Reduced risk associated with clearing and settling securities transactions, also shorter settlement cycles. Delivery versus payment - the exchange of securities and the cash to settle. Increased global attractiveness of the Jamaican stock market through the adoption of generally accepted international standards.
REPORTING REQUIREMENTS OF LISTED COMPANIES
Listed companies are required to conform to provisions of the Companies Act of Jamaica and to provide the Exchange with annual audited financial statements with certain minimum information and within specific time periods. In addition listed companies are required to submit quarterly unaudited financial returns.
In case of Take-Overs & Mergers, the Exchange imposes specific obligations on the listed offeror or offeree company.
The Jamaica Stock Exchange defines "Take-Over" to mean "an offer made to shareholders, to purchase such number of equity shares of a company that, together with the offeror's presently-owned shares will in the aggregate exceed 50% of the outstanding shares with voting rights of the company."
The general principles applicable to Take-Overs and Mergers include:
Strict compliance with the detailed regulations. That Stockholders be given sufficient evidence, facts and opinions upon which an adequate judgement and decision can be reached. No action be taken by the Board of the offeree company, without the approval of stockholders in general meeting, to frustrate a bona fide offer. The prevention of the creation of a false market in the shares of the offeror or offeree company. Rights of control to be exercised in good faith. The oppression of minority shareholders is wholly unacceptable. All stockholders of the same class of offeree company are to be treated similarly by offeror company. Compensation Fund
A Compensation Fund has been established to indemnify losses to Broker-members' clients in certain situations. Contributions are made by Broker-members based on the consideration for equity and preferred transactions.
In order to provide further protection to the investing public, the Exchange can intervene and run and/or wind-up the affairs of a Broker-member in certain situations where clients' interest are in jeopardy.
