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Suspension of Trading on PJSC shares

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Pariorty Service No
Working Hours 7:30 AM - 2:30 PM

Service Description

​Trading in shares of market-listed companies shall be suspended, pursuant to the procedures set forth by the Securities and Commodities Authority (SCA), in coordination with the markets to protect investors and shareholders if SCA considers the trading in such shares is not in the best interest of the public, is unfair, violates the rights of investors, or for any other reason.
  • Department Disclosure and Corporate Governance
  • Service Audience SCA licensed securities markets
  • Service Duration ​3 working days

Service steps & procedures

  1. SCA shall examine the applications received from the markets or companies to temporarily suspend trading in the shares of market-listed companies, provided that such applications mention suspension reasons and justifications.
  2. SCA shall issue its decision on the approval or rejection of suspension applications in accordance with the laws and regulations in force.
  3. The market concerned shall be notified of SCA's decision on suspension approval or rejection so that it can take the appropriate actions to implement the decision.
  4. In some cases, SCA shall take the decision to temporarily suspend trading in any market-listed securities under exceptional circumstances that call for such suspension—or if it sees that the trading in such securities is not in the best interest of the public, is unfair, or violates the rights of investors. Suspension shall also come into effect in the case of listed companies' failure to issue their interim and annual financial statements within the prescribed deadlines. In such cases, the markets shall be notified of SCA's decision to suspend trading in the shares of concerned companies so that they can take the appropriate actions for decision implementation.
  5. In some cases provided for by SCA's laws and regulations (such as Article 11/36 of the Regulations as to Disclosure and Transparency), the market concerned shall suspend trading directly and shall supply SCA with a copy of suspension decision.

Requirements & Documents

Conditions 

​Trading in shares of listed companies shall be suspended in the following cases and subject to the following conditions:
  1. (Article 36/11 of the Authority's Board of Directors' Decision No. (3) of 2000 concerning the Regulations as to Disclosure and Transparency)
    1. If the holding of the meeting coincides with trading hours, trading in the shares of the company shall be suspended. In all cases, trading in the shares shall be suspended until the Authority and the Market has been provided with the resolutions and financial statements presented for discussion in the meeting. 
  2. Article 22 of the Authority's Board of Directors' Decision No. (2) of 2001 concerning the Regulations as to Trading, Clearing, Settlement, Transfer of Ownership and Custody of Securities)
    1. The Authority has to temporarily suspend Trading of any listed Security in exceptional circumstances that call for such suspension, if it is evident that the Trading of such Securities is not in the best interests of the public, Trading of such Securities is unfair or may harm the interest of the shareholders or for any other reason.
    2. " ..... and upon the Authority’s approval, the Market’s director general may temporarily suspend Trading of any listed Securities in exceptional circumstances that may disrupt the Trading and the functioning of the Market in any of the following cases:
      • In the interim period between receipt of material information from the company and the actual publication of such material.
      • During a general assembly meeting of the company if it takes place while Trading is held.
      • Upon receiving a justified request from the company.
  3. (Article 20 of the Council of Minister's Decision No. (12) of 2000 concerning the Regulations as to the Listing of Securities and Commodities)
    1. The Authority may, after investigation and consultation with the Markets, suspend the listing of any Securities from trading in the Market, if there occur exceptional circumstances or threats to proper working, or if it considers that trading in such Securities does not serve the public interest or is oppressive or violative of shareholders' rights, or for any other reasons.
    2.  Without prejudice to the generality of what appears in paragraph (1) of this Article, the Board may suspend listing in the following cases:
      • If the Company ceases to satisfy a condition for listing stated in Article (6) of these regulations.
      • If the Company defaults on payment of the fees due from it to the Authority, the Market or the clearing.
      • If the net value of the shareholders' equity in the Company falls below (50%) of the capital.
      • If the market value of the Securities falls below (60%) of the nominal value thereof, or if such value suddenly rises.
      • If a resolution is passed by the extraordinary general assembly to reduce the Company's capital.
      • If the Company fails to issue annual, half-yearly and quarterly reports on its activities.
      • If the extraordinary general assembly passes a resolution to sell the greater part of the Company's assets.
      • If the Company, on the basis of a resolution of its general assembly, submits an application showing due cause for the suspension of the listing of its Securities.

 

Required Documents

  1. General Assembly meeting invitation.
  2. Company's disclosure of the date and time of its board meeting during which issues affecting share price and movement are discussed, including cash dividends, bonus shares, capital increase or decrease, share nominal value subdivision, share buyback, and interim or annual financial statements.
  3. Company's justified application of the suspension of the listing of its securities, on the basis of its general assembly resolution.
  4. An application from the market where the company is listed and for the reasons outlined in the Articles mentioned above

Required Documents

  1. General Assembly meeting invitation.
  2. Company's disclosure of the date and time of its board meeting during which issues affecting share price and movement are discussed, including cash dividends, bonus shares, capital increase or decrease, share nominal value subdivision, share buyback, and interim or annual financial statements.
  3. Company's justified application of the suspension of the listing of its securities, on the basis of its general assembly resolution.
  4. An application from the market where the company is listed and for the reasons outlined in the Articles mentioned above
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