The Regulation of Securities Trading at the Central African Stock Exchange Market

Abstract

This article deals with the regulation of the Central African Stock Exchange Market (BVMAC) located in Douala Cameroon. It was created in 2003 by the CEMAC countries for the main objective of financing the CEMAC economies. This article focuses on the key regulation problem affecting the CEMAC stock exchange market such as imposing high compliance costs of at least 100 million capital which has thus prevented many companies from listing at BVMAC. Moreover, looking at the legal form of companies to be listed at BVMAC, the fact that only Public Limited Liability Companies are allowed into the market inadvertently excludes small and medium size businesses as well private limited companies which proliferate the CEMAC Zone, from benefiting from financing at the stock market. Generally, there are other regulatory issues like weak regulation, low enforcement, information asymmetry, poor disclosure of sensitive information by listed companies, insider trading, the fact that bonds listed must be at least two years old, and poor implementation of proposed policies like communication. Against this problematic, this article begins by examining the meaning of Securities generally, then the substantive legal provisions aimed at regulating securities trading at the CEMAC stock exchange market and demonstrate how such provisions rather discourage investors based on published materials such as reports, textbooks, theses and journal articles. Next, the article stresses the need to consider some policy proposals at the stock market for better regulation to encourage investors. The last part of the article dwells on conclusion and recommendation.