Board approved Financial Supervisory Authority On making an amendment to some provisions of the rules for the registration and delisting of securities in a number of areas to protect investors, as the Board added two new clauses for the cases that permit the delisting of the listed securities mentioned in Article No. (53) of the registration rules.
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Dr. said. Muhammad Omran, Chairman of the Financial Supervision Authority, that the first item included the assumption of the management of the stock exchange notifying the chairman of the board of directors of the company of the breaches of the registration rules that may result in the cancellation of the securities, provided that the company is committed to correcting the violations within three months from the date of the notification of the stock exchange to it, and in case of failure Its commitment to the correction. The position of the company is presented to the registration committee to issue a decision to cancel the registration of its shares on the stock exchange tables and to notify the company of this within the working day following the issuance of the decision.
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The Chairman of the Authority added that the second clause was an affirmation of the protection of free-trading shareholders, as the Authority’s Board of Directors decided to compel the company in the event of compulsory removal of its shares from the stock exchange to purchase free-trade shares and the owner of them to sell and to ensure that others buy these shares at a price not less than the fair value that It is determined by an independent financial advisor who is registered in the Authority’s registry. Any person whose shares of the company are free to trade as mortgaged to him as security of a debt or obligation may sell the shares pledged to him in accordance with the provisions of this paragraph.
Dr drew. Omran indicated that the Authority – in the event of the company’s inaction – may assign an independent financial advisor to prepare a fair value study and oblige the company to provide the necessary data for the study, and in all cases the securities are written off by a reasoned decision of the Securities Registration Committee in the Stock Exchange, and the delisting decision shall take effect on the date specified by the decision to write them off. The Stock Exchange discloses on the trading screens and on its website all correspondences and decisions regarding the implementation of this article.
Dr. also stressed. Imran stated that the Authority’s Board of Directors’s decision was taken to protect the shareholders who own free-floating shares, as it was stipulated in its clauses that trading of the securities would continue after the issuance of the Extraordinary General Assembly’s decision to elective delisting for a period not exceeding three months, and in the event that the company did not comply during that period With the implementation of the write-off process, the company’s order is submitted to the Stock Exchange’s listing committee to issue a compulsory delisting decision of the securities and obligating it to buy the shares of those affected by the delisting.
The Chairman of the Authority also revealed that the approval of the Board of Directors to amend some provisions of the rules for the registration and delisting of securities included reorganizing the dealings of the members of the Board of Directors and the main and internal shareholders, and the Board decided to amend Article No. (38) of the registration rules to include not allowing the insiders and related parties to deal with them. The percentage of their contribution to the company’s capital was on any company’s securities within five working days before the deal and one working day after the deal after publishing the essential information. The same ruling applies to the members of the company’s board of directors and their officials or any people who can access information that is not available to others and have an impact. On the price of the security that relates to this information.
The Chairman of the Authority added that the Board of Directors’s decision affirmed that none of the main shareholders who own 20% or more shall deal alone or through their related parties except after notifying the Stock Exchange of this prior to implementation in accordance with the form prepared for this at the Stock Exchange.
Likewise, the aforementioned notification does not apply to compulsory sales and sales that take place to settle pledged securities, as well as operations carried out in favor of portfolios of securities and investment funds owned by legal entities that are managed by independent investment managers.
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