Stock Exchange CEO: Romanian capital market needs broader participation of the population

The Romanian capital market needs a broader participation of the population for listed entrepreneurs to benefit from this mass of investors, Bucharest Stock Exchange CEO Adrian Tanase told a specialist conference on Thursday. 

"We want an efficient capital market that accurately assesses traded shares and those that will be traded. To achieve this efficiency in the capital market, we need to work in several directions. First, we need to achieve a broader participation of the population so that we have more investors in the capital market for listed entrepreneurs or those who will get listed to benefit from this mass of investors and hope for a fair assessment. Secondly, we need an efficient secondary market with stock exchange products, where investors should be able to implement all their investment strategies. We are not there yet, and as far as this is concerned we have an important project that was launched in January, the Central Counterparty, its implementation entered the home stretch, as the institution's licensing has been initiated," said Tanase. 

According to the Bucharest Stock Exchange (BVB) official, an important aspect for the local capital market is how companies directly communicate with investors, as well as the implementation of best practices. 

"It's not enough to have many stock market investors or the complete set of stock exchange products available to investors, the companies also need to communicate correctly with investors for the sake of capital market efficiency that translates into a fair value of the company on the stock market. This is where the Romanian Investor Relations Association (ARIR) steps in, to improve this dimension. It is very important that we implement best practices, that the issuers know these practices and what investors want," said the BVB CEO. 

The Romanian Investor Relations Association organised on Thursday the first edition of the Forum for Investor and Analyst Liaison (AR&IR), an annual conference devoted to best practices in relations with investors and corporate governance.