CORPORATE GOVERNANCE industry in Ghana. As such, the SEC is responsible for licensing and regulating the GSE and any future stock exchanges in the country. It is in charge of guiding and regulating the securities industry in Ghana, including investment advisers, mutual funds and unit trusts, securities dealers and their agents. The SEC allows for alternative dispute resolution under its rules. Its regulations require that all avenues for dispute settlement be covered before a matter is taken to court. Currently, there are some private arbitration initiatives driven by the private sector in Ghana, for example the Ghana Arbitration Centre. GSE Box 4.3: The Ghana Stock Exchange In recent times, the GSE has been the second fastest growing stock exchange market in Africa, after Nigeria. The GSE attributes the good run in the market to three factors: (a) stable macroeconomic indicators, including interest rates on treasury instruments, the inflation rate, and the exchange rate; (b) excellent appreciation results posted by securities listed on the Exchange; and (c) sustained high demand from a buying public. Provisional Listing Arrangements also known as “Fast Track Listing” enable companies, especially SMEs and those on the government’s divestiture list, to secure upfront listing before an Initial Public Offering (IPO) and six months within which to seek formal listing. 36. The Ghana Stock Exchange (GSE) was incorporated in July 1989 as a private company limited by guarantee under Ghana's Companies Code. The Exchange was recognised as an authorised stock exchange under the October 1990 Act, and trading on the floor of the Exchange commenced in November 1990. In April 1994, it converted into a public company limited by guarantee. The GSE is a self-regulatory organisation, but laws require that the SEC should approve membership and listing rules. GSE enforces its own rules, but the SEC acts as a surveillance mechanism. SEC staff conducts inspections and other monitoring duties, while SEC regulators look at areas such as monthly/quarterly reporting requirements, capital adequacy, and liquidity issues. 95