The Guyana Securities Council (GSC) has secured a court order mandating the Guyana Association of Securities Companies and Intermediaries (GASCI) to keep the stock exchange open between June 18, 2008 to July 4, 2008.
It appears that the GSC, the stock exchange regulator, moved to court after GASCI decided to suspend trading over that period. Over the years the stock exchange has been in existence, relations between the GSC and GASCI have sometimes been tense.
In a notice published in yesterday’s Sunday Stabroek, the GSC revealed that on Friday Justice James Bovell-Drakes in Chambers following an application by the GSC granted the following orders against GASCI:
* that the defendants revoke their decision to close the exchange between June 18, 2008 to July 4, 2008;
* that the defendants reopen and conduct their statutory stock exchange duties and functions and in particular their trading sessions today and on June 30, 2008;
* that the defendants be restrained from closing the stock exchange, suspending trading or reducing the number of trading sessions for the period June 18, 2008 to July 8, 2008, inclusive or otherwise until after the hearing and determination of the matter.
The case is returnable for June 25.
Suspensions of trading are often seen as reducing confidence in the market. GASCI has faced issues related to the cost of its operations and how this could be financed considering the sometimes thin trading and absence of listed companies.
