Managing Director of the Ghana Stock Exchange, Ekow Afedzi The Ghana Stock Exchange (GSE) has justified the suspension of the cocoa buying firm Produce Buying Company (PBC) from the market, insisting the move is needed to protect investors.
GSE Tuesday announced the suspension of PBC from the bourse, over its failure to publish its financial results and meet some listing requirement.
There are fears this move could rather affect market confidence, at a time that GSE is struggling to improve listings. But the Managing Director of the Ghana Stock Exchange, Ekow Afedzi disagrees.
He said, “When you take the case of PBC, PBC’s annual year ends in September and since September they have not released their full-year results. Along the line, they’ve sought permission from the regulator for extension and that ended at the end of July. So we decided to enforce the rules.”
Mr Afedzi said one of the key things “we would be doing going forward is to enforce the rules especially when it comes to meeting and continuing listing obligations” The Ghana Stock Exchange (GSE) had earlier warned of a stiffer punishment for all listed companies that do not comply with its listing regulations.
This follows the compulsorily delisting of Golden Web Limited and Transaction Solutions (TRANSOL) Ghana Limited from the official list of the Accra Bourse effective April 3, 2018.
The exchange has been worried about companies not submitting their quarterly financials, among others, in spite of several promptings.
GSE in also 2017 suspended Cocoa Processing Company, Transol and Clydestone but later on lifted the suspension.
Under Rule 13(1) of GSE’s Listing Rules, the GSE said, “The Council may at any time and in circumstances as it thinks fit, suspend or cancel a listing and shall do so to protect investors and to ensure an orderly market”.