ISX rule changes

[Kickabuck]

At the end of last month, the Iraq Securities Commission (ISC) announced new rules on stock suspensions. Effective September 1, trading is to recommence no more than four months after general assembly meetings when rights issues are announced and immediately otherwise. Pre-general assembly suspensions are limited to one week.
This new schedule is a big improvement. Previously, stocks were suspended after general assembly meetings for as long as three weeks even when no particularly market-moving news was announced. Post-rights issue suspensions have typically lasted anywhere from four to eight months. Warka Bank is still not trading over a year and a half after its failed rights issue early last year.
The one-week pre-general assembly period isn’t really news, however. This appears to have been in place since some time in the second half of last year. Formerly, there had generally been two weeks between the suspension and GA meeting dates.
It’s unclear why any of these suspensions were necessary in the first place or what has changed to make them less necessary now. I suspect that they were never really necessary and that nothing has changed. I think the ISC is simply trying to improve the trading environment ahead of the telecom IPOs that were supposed to have taken place last month.
If that is the goal, however, the new rules obviously do not go far enough. Unnecessary trading halts are just as unacceptable whether they last for four months or for eight.
If the ISC really wants to get an ‘A’ from foreign institutional investors it will have to eliminate pre-GA and post-rights issue suspensions altogether.

http://www.iraq-businessnews.com/2011/09/06/isc-rule-change-gets-e-for-effort/

[Uno]

The next question is what are the penalties for non-compliance. So far it seems there are none.

[Kickabuck]

Who knows Uno...they need to zap them in the pocketbook, 25K USD per month delay. But, this market has been so generous with free and paid up shares, I hate to see anything rock the current momentum we have in place. The ISX is set to expand again when United Bank, North Bank, and Bank of Baghdad return. It would also be nice to put an end to the Warka stagnation...but as we all know, everything moves at a snails pace. Then, there are about 75 holidays a year slowing things down further. Cook the slow grow...as long as ISX stocks take all the paperwork...we're still in the basement, we'll let the heavy hitters occupy the ground floor down the road.

[MEALTICKET]

Good point

[24mm exposed grid]

The next question is what are the penalties for non-compliance. So far it seems there are none.

You raise a very good point Uno.

The penalties for non-compliance at least for not providing the ISC with the most up date date accounting paperwork are so unbelievably small, I thought at one point it must have been some kind of typo I was reading. Cant remember the figures off the top of my head, but they were so small as to be almost insignificant.

Kicka is right, any company that does not fall in line with ISC rules must be hit swiftly, heavily and hard in the pocket in order to ensure that they comply in future.

[MEALTICKET]

You raise a very good point Uno.

The penalties for non-compliance at least for not providing the ISC with the most up date date accounting paperwork are so unbelievably small, I thought at one point it must have been some kind of typo I was reading. Cant remember the figures off the top of my head, but they were so small as to be almost insignificant.

Kicka is right, any company that does not fall in line with ISC rules must be hit swiftly, heavily and hard in the pocket in order to ensure that they comply in future.

Maybe the figures will make sense after a revaluation....

[24mm exposed grid]

Maybe the figures will make sense after a revaluation....

Hehe.... I do hope you're having a laugh....... sometimes it's difficult to tell !!