The Cyprus Securities and Exchange Commission (CySEC) on Wednesday announced the launch of a new initiative to bolster the Cyprus Stock Exchange (CSE).
The commission explained that the aim is to “restore the CSE’s role as a driver of economic development in Cyprus”.
In its announcement, CySEC mentioned that it held a roundtable discussion on Wednesday at its offices in Nicosia to discuss this issue.
“During the discussion, various stakeholders presented and discussed proposals for revitalising investor interest and attracting new companies and other investment products to list on the CSE,” it said.
“Among the proposals presented were the inclusion of titles from start-up companies, which could attract the interest of investors seeking dynamic and innovative markets,” CySEC added.
Another suggestion involved the introduction of government bonds or bonds from semi-governmental organisations or other local authorities.
Proposals were also made to provide incentives for companies to list on the stock exchange, such as tax reductions, aimed at enhancing liquidity and diversifying the tradeable securities on the CSE.
Other suggestions included boosting financial literacy and investor education to better understand the functions of the stock exchange and investment strategies.
“The need for technological upgrades and improvements to the CSE’s infrastructure was also discussed, as well as cooperation with other international markets to make the Cyprus Stock Exchange more attractive to global investors,” the commission said.
It also mentioned that “another key measure for revitalising the CSE was the organisation of marketing campaigns and events in collaboration with international financial organisations to promote the stock exchange and investment opportunities in Cyprus”.
Commenting on this initiative, CySEC chairman George Theocharides said that “a healthy stock exchange helps listed companies raise capital for their development”.
“Especially in a small economy like Cyprus, it is crucial because it strengthens liquidity and creates opportunities for establishing new businesses, in addition to supporting the existing ones,” he added.
“A healthy CSE,” Theocharides continued, “can also play a role in the internationalisation of Cypriot businesses by attracting foreign investors and opening new markets for them”.
On his part, CSE chairman Marinos Christodoulides thanked CySEC for this initiative, describing it as an important action.
“Collaboration with all the involved parties is crucial for the successful implementation of the proposals submitted,” Christodoulides said.
“We had a constructive and substantive discussion regarding all the proposals which will be carefully examined,” he added.
The CSE chairman also said that “it is important to strengthen the position of the CSE as a reliable and internationally recognised institution, which will offer more opportunities for the development of both new and existing businesses, while also attracting foreign investors and contributing to the increase of liquidity in the Cypriot economy“.
Finally, the announcement mentioned that the meeting was also attended by a number of officials, senior or top executives from CySEC, the Finance Ministry, the CSE, the Fiscal Council, the Cyprus Public Audit Oversight Board, CIPA, SYDEK, CIFA, ICPAC and CFSFA.
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