The Ghana Stock Exchange (GSE) has warned of 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.
It has earlier in 2017 suspended Cocoa Processing Company, Transol and Clydestone but later on lifted the suspension.
In a release, the GSE said the decision to suspend Golden Web and TRANSOL were based on Rule 13 of the GSE Listing Rules.
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”.
Among the reasons for which GSE may delist a company is where the financial situation of the company is significantly threatened, as provided under Rule 13(4)(g) of GSE’s Listing Rules; or where the company consistently fails to comply with GSE’s Rules and directives, as per Rule 13(4)(h) of GSE’s Listing Rules.
The regulators of the financial system, the Bank of Ghana and the Ghana Stock Exchange have recently been tough in order to protect depositors’ funds or shares from going astray.
The Ghana Stock Exchange (GSE) returned 30.51 percent in cedi term for investors to end the first quarter of 2018 on a blissful note.
This made it the best performing stock market among seven African stock markets in local currency term at the end of the first three months of this year.
There are presently about 35 companies listed on the main GSE whilst about five companies are listed on the GAX Market for SMEs.