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Barbados stock exchange pushes growth market for junior market entrants, crypto assets

The Barbados Stock Exchange is trying to grow its Junior Market but currently there are no companies listed on it.

The segment has been rebranded the “Growth Market”.

The Barbados Stock Exchange (Photo: BSE)

One year ago, BSE Managing Director Marlon Yarde said the BSE was anticipating regulatory approval for the trade in securitized digital tokens, while proceeding on a three-prong plan to boost the exchange’s global profile.

The BSE’s Junior Market was relaunched and rebranded as the Innovation and Growth Market (IGM) of the BSE. 

General Manager of the BSE, Marlon Yarde
(Photo: Barbados Advocate)

The stock exchange also committed to promoting its International Securities Market (ISM) and boosting the ISM as the trade platform of choice for crypto-assets, Yarde said.

In mid-September 2019, the BSE indicated in an update, “There are currently no companies listed on the Innovation and Growth Market – IGM – (formerly the Junior Market).”

The Junior Market commenced operations in October 1999, and its objective is to cater to those smaller or newer public companies, which may not meet all the necessary requirements for listing in the regular market.

Companies applying for listing on the Junior Market of the Exchange must have gross assets of not less than BDS $500,000 excluding goodwill.

They must also have minimum equity capital of BDS $200,000; and subordinated loan capital (other than prior charge) which is not more than 25¼% of equity capital.

“The BSE was in the process of applying for recognized stock exchange status in the UK and working towards becoming a designated offshore securities market with the US Securities and Exchange Commission.”

– Marlon Yarde, General Manager of the Barbados Stock Exchange

Applicant companies must have public shareholders numbering not less than 25 and holding not less than 25 per cent of the issuer’s outstanding total equity capital.

Companies seeking to list on the growth exchange also need market introduction and continued sponsorship by a member of the Exchange.

They must also have evidence of competent management; and be incorporated under the laws of Barbados or another jurisdiction approved by the Exchange.

Yarde said the BSE has been lobbying Government for incentives for the Growth segment. 

 In September 2018 Yarde also said the BSE was in the process of applying for recognized stock exchange status in the UK and working towards becoming a designated offshore securities market with the US Securities and Exchange Commission.