Government approves new capital market for New Zealand small businesses

The New Zealand stock exchange, NZX, has been granted leave to set up a new growth market with an alternative disclosure regime to help small and medium-sized businesses to list and raise capital, Commerce Minister Craig Foss announced Monday.

"An alternative disclosure regime will make it easier for firms to manage their disclosure obligations internally," Foss said in a statement.

"This could lower the cost of capital-raising for New Zealand's smaller and high-growth businesses."

The new market would have additional features designed to support liquidity and efficiency such as a research provision, market-making services and the support of a dedicated sponsor.

"The new market may also give New Zealanders, who have the right risk appetite, a greater number of firms to invest in," said Foss.

The Financial Markets Authority would consider the new market's rules and new regulations would be issued after the Financial Markets Conduct Act replaced the Securities Markets Act on Dec. 1.