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Johannesburg - Local bourse operator JSE Ltd has said the idea behind its mooted black economic empowerment board originated from clients seeking a platform to trade shares which form part of empowerment transactions.
"We were approached by a company that wanted to make sure its shares will be traded in a transparent manner once the mandatory lock-in period expired," said JSE deputy CEO Nicky Newton-King on Tuesday, declining to name the firm.
Asked about the cost of listing on this exchange, Newton-King said it would be "substantially lower" than trading over the counter.
"People will need to be pre-approved as black before they can trade on it," said Newton-King. "The logic here is that if company has a particular [black] shareholding, it will have a mechanism with which to trade its shares when the lock-in expires."
Potential investors could include black individuals or investment holding companies.
- Fin24.com
