Emerging Markets meeting closes with recommendations to enhance investor confidence
The Emerging Markets Committee (EMC) meeting on Monday, November 20, concluded a five-day conference with the recommendation to enhance investor confidence in stock markets.
Devendra Raj Mehta, chairman of the Emerging Markets Committee of the International Organization of Securities Commissions (IOSCO), said that among the issues discussed were how to upgrade the investment environment in Asia, Africa, East Europe and Latin American stock markets.
Mehta said the conference also discussed the use of modern technology, including Internet, to upgrade the performance of these bourses.
At the press conference, Mehta stressed that “steps should be undertaken to enhance investor confidence through transparency, accountability and disclosure.” These measures will help revitalize emerging stock markets, he explained to reporters.
The EMC official said that emerging markets should adopt modern technology in their activities as part of their endeavor to upgrade their standards.
According to Mehta, 60 percent of trading in South Korea is done through the Internet, compared to only 30 percent in the United States.
He said that IOSCO's emerging market members should improve cooperation among themselves.
Mehta, an Indian national said, “investors in the emerging markets lack confidence,” as well as suffering from technology problems and the weak of bond markets, he added.
Mehta indicated that he was impressed by the developments introduced in the Jordanian bourse in the past three years.
At least 42 percent of the shares of the firms listed in the Amman bourse are owned by non-Jordanian investors, mostly from Middle East region.
The EMC, which includes 70 countries, is charged with establishing the standards on which stock markets operate to enhance performance and draw more investors.
Members range from Africa, Asian, Latin America and Eastern Europe.
Next year's emerging market meeting will be held in Sweden, Mehta said. — ( Jordan Times )
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© 2000 Mena Report (www.menareport.com)
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