Trinidad and Tobago Stock Exchange Small & Medium Enterprise (SME) Market
In the 2011-2012 National Budget, the Minister of Finance announced plans by the Government to provide small and medium enterprises with an avenue for raising capital on the local capital market in order to reduce their reliance on bank financing and provide them with an alternative source of capital to expand their business. This initiative is also intended to foster the development of the local capital market which is important in the thrust towards economic diversification. In response to this initiative, the Trinidad and Tobago Stock Exchange (TTSE) established a market for Small and Medium Enterprises (SME Market).
The Listing Requirements outline the criteria that each company must satisfy in order to be considered for listing on the SME Market of the Exchange. The approval of an application for listing of securities is solely at the discretion of the TTSE. The fact that a company meets the listing requirements does not necessarily mean that its application will be approved. Other qualitative factors will also be considered by the Board of the TTSE when deciding on whether to approve an application. These factors include, but are not limited to, the nature of the business, its financial position, the market for its securities, its regulatory history, if any, its past corporate governance activities, its historical record and pattern of growth.
The Listing Agreement outlines the ongoing requirements that a company must satisfy in order to remain a listed company on the TTSE. By agreeing to the terms of the listing agreement the issuer commits itself and its Board of Directors to adhere to certain responsibilities.
FINANCE ACT, 2020
Section 4 of this document outlines the major amendment to the Corporation Tax Act 2014 Chapter 75:02, whereby the rate of tax for an SME-listed company on The Trinidad and Tobago Stock Exchange shall be calculated as zero (0) percent for the first five (5) years from listing; and as a fifty (50) percent tax holiday for the remaining five (5) years [calculated as fifteen (15) percent of Corporation Tax].