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‘New Vision shares safe investment’

By Vision Reporter

Added 12th November 2004 03:00 AM

UGANDANS should get acquainted with investing in financial instruments like New Vision shares since it is the way forward to a market-led economy, Uganda Securities Exchange (USE) chief executive officer, Simon Rutega, has said.

UGANDANS should get acquainted with investing in financial instruments like New Vision shares since it is the way forward to a market-led economy, Uganda Securities Exchange (USE) chief executive officer, Simon Rutega, has said.

By Sylvia Juuko
UGANDANS should get acquainted with investing in financial instruments like New Vision shares since it is the way forward to a market-led economy, Uganda Securities Exchange (USE) chief executive officer, Simon Rutega, has said.
“The cost of the product is only sh200 to encourage the public invest in financial instruments. When you purchase these shares, you are saving rather than consuming,” Rutega said recently during a phone interview.
He assured investors who are concerned about the 80% ownership by the Government that after the initial public offer (IPO) on November 19, New Vision would be accountable to USE, Capital Markets Authority (CMA) and the private sector.
“If a company owned 100% by the Government is making profits, it can only get better because with the IPO and eventual listing, there will be more scrutiny from USE, CMA and private sector investors,” Rutega said.
CMA’s chief executive officer, Japheth Katto, said they emphasise full disclosure by share issuers to enable investors make informed decisions.
“In the prospectus, investors are told to consider risk factors because every investment has risks depending on the industry it falls under. Majority shareholding can be a risk and an advantage. The Government would like to see the company doing well and would not want to jeopardise it,” Katto said at his office in Kampala.
He said all shareholders were protected under the CMA Act, Company’s Act and USE’s listing rules, which entitle all shareholders to the same treatment.
“It is not politically-expedient for the Government to mistreat and make minority shareholders disadvantaged. It would not be in the interest of majority shareholders to mistreat the minority under the Company’s Act. They can go to court for protection,” Katto said.
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‘New Vision shares safe investment’

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