For a secondary market in DR i think what we really need it’s different kinds of securities and “in volume”. This is to inject liquidity to the market and creating culture in the way. But a secondary market based on corporations securities, be it debt or shares, i think that there is long way to go. This is because of the think you had already said about the magnates diluting their power on the companies, the dilemma with the releasing of financial statements and “tax evasion” problem, the littler knowledge that financial managers of corporation have about how to use the securities market mechanism to raise funds and a combination of others things that have to be work out.
Probably the kinds of securities which will have more acceptances in the short term are the “fondos inmobiliarios” (very alike REIT`s), because the real state market in DR is growing very fast; and the “fondos de capital de riesgo” (something like venture capital investment funds), in this way the corporation don’t necessarily have to release a “big pack” of financial information. These kinds of investment company doesn’t need and already develop securities market to work.
And finally there are securities like ADRs or GDRs, depositary recipe design for the dominican market, but i’m not really sure if these kind of instrument are going to work over here, because of it’s cost. A wicked idea but should be interesting to see it!.
About the IFCA, i think that ME is right about that financial paradise, they won’t aim for the local market in the beginning, and not even while it doesn’t worth it.
|