The Guyana Securities Council, set up under the Securities Industry Act, is the final regulatory body. Its chairman is Mr Brian James and the Chief Executive Officer Ms Cheryl Ibbott. There are at this stage three registered brokers, Trust Company (Guyana) Limited, GNCB Trust Corporation Inc. and Beharry Stockbrokers. These are the companies that you can consult if you want to buy or sell shares. The Guyana Association of Securities Companies and Intermediaries Inc. (GASCI) is the body responsible for the running of the exchange. It is governed by a comprehensive set of rules that includes provisions for applying for membership as a broker, a detailed code of conduct which includes, for example, a requirement that members (brokers) must disclose to customers any material interest the member may have in a transaction to be entered into with or for a customer, or a relationship that gives rise to a conflict of interest in relation to a transaction (rule 4.03), and a requirement that a member shall take reasonable steps to ascertain if any of its customers are insiders and shall maintain records to assist in the monitoring of insider dealing (4.22). There are financial and accounting requirements for members. There is a Listing Committee which handles applications by companies to have their shares listed. There are detailed rules governing trading in shares, there are rules providing for members to be disciplined for misconduct. Indeed, the framework in place is in keeping with that of stock exchanges elsewhere.

At this stage, shares in twelve companies have been listed. These are Demerara Distillers Ltd, Banks DIH Limited, National Bank of Industry and Commerce Ltd, Guyana Bank for Trade and Industry Ltd, Citizens Bank Guyana Inc., Demerara Bank Limited, J.P. Santos and Company Ltd, Caribbean Containers Inc, Demerara Tobacco Co Ltd, Guyana Stockfeeds Ltd, Sterling Products Ltd and Demerara Bank Limited.

To date, the following shares have been offered for sale, 3 million National Bank of Industry and Commerce shares @ $ 15.00 each, 5,500 Guyana Bank for Trade and Industry shares @$28.00 each, 4 million Banks DIH shares @$7.50 each and 340,000 Demerara Distillers shares @$7.50 each. There is a bid for 1000 National Bank of Industry and Commerce shares @$15.00 each. Two deals have been completed, a cross-trade of 64,000 Banks DIH shares @$7.50 ( a cross trade means the same broker received the offer for sale and the bid and meshed them and notified the exchange) and an on floor trade of 4500 Guyana Bank of Trade and Industry shares @ $28.00 where the transaction was completed at the exchange.

This is a modest start, though it must be noted that the two substantial blocks of shares on offer amount in value to $75 million and they have been offered at the prices at which these shares have been trading in private transactions, prior to the start of the exchange.

The Call Exchange that had existed previously had failed because of a lack of sellers, not a lack of buyers. To establish confidence in the market it might be desirable for GASCI to place some advertisements in the media or arrange a simple public education programme explaining how shares are traded, the various methods by which the value of shares can be estimated (price-earnings ratio, dividend yield) to give the public including the thousands of shareholders already out there some idea of how the stock exchange works. Share prices are, of course, fixed by the market and are influenced by a wide variety of factors including political stability and confidence in the economy but it is useful if people have some idea of the methods analysts use to assess share prices and whether the existing prices are realistic. If, for example, the market price is 25 times the earnings many analysts would feel the share is overvalued. One senses that some of the sluggishness in the previous market was due to the fact that existing shareholders had little idea of what their shares were worth. In a more developed society business commentators offer opinions on share prices and advise their readers when they think a share is a good buy at its current price, or when it is overpriced. There is no such service here except for Businesss Page which will no doubt in due course offer some coverage of the market.

The Stock Exchange is an important beginning and it must be hoped that trading will gradually develop. Some of the big players on stock markets are traditionally insurance companies, pension funds and mutual funds, where managers use the savings of many people to invest in shares. There is one such institution in Guyana, the Guyana Unit Trust, which has been going since 1975 and has established a good record for dividends and growth. Smaller players can put their money in this mutual fund and spread the risk or they can consult a broker with instructions to buy or sell shares. In both cases, the broker can advise on what price should be offered or asked. There are already thousands of shareholders in Banks DIH Ltd, Demerara Distillers Limited and other now listed companies who over the years have received dividends and bonus issues and have attended general meetings. They have some idea of the system. They know that owning shares can bring rewards if you pick the right companies. It can give small investors a real stake in the economy.

Now, the stock exchange gives the opportunity to buy or sell quickly so they can buy some more shares if they expect the company to continue to do well or sell some shares if they need money. The exchange facility makes shares much more liquid.

A private enterprise economy cannot develop fully without a stock market.

The next step will be for this exchange to establish linkages with the exchanges that already exist in Jamaica, Trinidad and Barbados to facilitate the regional trading of shares. In addition, one hopes that if the market develops leading private companies like John Fernandes Limited and Laparkan will at some stage feel the desire to convert to public companies and offer shares to the public. It is possible to do this while retaining control.