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Johannesburg - The JSE [JSE:JSE] is planning to start a separate board for black economic empowerment companies.
This will be a separate board to handle one of South Africa's unique situations, said JSE CEO Russell Loubser at a feedback session on the company's results this week, referring to obligatory periods during which BEE shares are not allowed to be traded.
Another rule attached to some BEE transations is that beneficiaries are only allowed to sell their stakes to other black people. This will be the board where they may do so, Loubser said.
He said the move will also assist the stock exchange to become a platform for liquid shares. Much criticism has been directed at BEE deals for making shares illiquid because of the rules attached to the transactions.
Analysts have welcomed the proposal.
According to head of treasury and strategic research at Nedbank Capital Ian Cruickshanks, it's a good proposition to have an aggregation of socially responsible companies.
He said it is especially welcome in light of companies being awarded points for their empowerment strategies. Socially responsible fund managers will also be keen to apportion some of their funds to such listings.
- Sake24.com
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