Securities and Commodities Authority Regulations 2022: Regulatory Bylaw No. 3 on Suspension and Delisting of Companies

Securities and Commodities Authority Regulations for the Year 2022 Regulatory Bylaw No. (3) Suspension of Trading and Delisting of Companies in the Securities Market

Article (1)
The Market, with the approval of the Authority, shall suspend the trading of a company's shares in any of the following cases:

a. If the company loses a condition of the regulatory bylaws issued by the Authority regarding the listing conditions. b. If the company fails to meet disclosure requirements.
c. If it deems it necessary to do so to protect investors or to maintain an orderly market.
d. If the company violates any of the decisions or regulatory bylaws of the Authority or the Market.

Article (2)
The Market, with the approval of the Authority, may suspend trading upon the company's request:

a. If the company submits a justified request to the General Assembly to suspend the trading of its securities based on a decision by the General Assembly. b. The company may request the Authority to suspend trading upon the occurrence of a material event affecting it, provided it discloses this event immediately.
c. When submitting a suspension request to the Authority, the company must provide the following:
First: The justified reasons for the suspension request and the requested duration.
Second: Information regarding the nature of the event affecting the company's activities for which the suspension was requested. d. The Authority may accept or reject the suspension request at its discretion.

Article (3)
The Authority may suspend the trading of a company's shares based on legal requirements and the Authority's regulatory bylaws. A company's trading is suspended if there is a legal cause for suspension or if Regulatory Bylaw No. (2) issued by the Securities and Commodities Authority is applied.

Securities and Commodities Authority Regulations for the Year 2022

Article (4)
Termination of Suspension:

a. The Authority and the Market may terminate the suspension decision if the cause for suspension ceases to exist. b. The termination of suspension depends on the accompanying circumstances, and the Authority may impose any conditions it deems appropriate.

Article (5)
In the event of a decision to resume trading on a suspended company's shares for a period exceeding six months for any reason, the shares shall be adjusted by 50% up or down from the closing price of the last session for that single session, and the trading price rate for this session shall serve as an indicator for subsequent sessions.

Article (6)
a. The Market's Board of Governors may suspend the trading of a company's shares when necessary to protect investors, for a period not exceeding ten working days, and obtain the Authority's approval if the suspension exceeds this period. b. Termination of the suspension decision if the cause for suspension ceases to exist.

Article (7)
Regulatory Bylaw for the Delisting of Listed Companies:
The Authority may delist any company from the listing in the following cases:

a. The company takes a decision to liquidate. b. The company declares bankruptcy or a decision is taken to dissolve the company.
c. The company's activity changes in a manner that affects its share price in the market.
d. The company merges with one or more other companies, resulting in the termination of the company's legal personality. e. The company ceases to conduct its activity for a full year. f. The company continues to be suspended from trading for six months without taking appropriate measures to resume trading. g. If the Authority deems there is justification for delisting the company from the Market.

Securities and Commodities Authority Regulations for the Year 2022

Article (8)
Delisting upon the Company's Request:
The company may submit a request to the Authority to delist it from the Market according to the following conditions:

a. If the trading volume of the company's shares does not exceed 0.005 (five thousandths) of the number of issued shares annually for two consecutive years. b. The request must be based on a reasoned decision by the General Assembly with the approval of at least 51% of those present.
c. The company must submit to the Authority and the Market its financial statements for the last year audited by the auditor and approved by the General Assembly, along with financial data for the last quarter.
d. The company must announce the General Assembly's decision to delist in two daily newspapers and in the bulletin and electronic website of the Market and the Authority. e. The company must settle all its financial obligations towards the Authority and the Market. f. Holders of 5% or more of the company's shares may object to the delisting decision within 15 (fifteen) days from the date of the decision at the Securities and Commodities Authority.