Securities market given deadline extensions to meet key reporting requirements

Both the Securities and Exchange Commission and the Ghana Stock Exchange have granted extensions to operators in the securities market to meet the key requirements for their continuous participation in capital market activities.

The Securities and Exchange Commission has informed Issuers and Market Operators of an extension of its deadline for the submission of audited annual financial statements against the background of the disruption created by the outbreak of the Coronavirus (COVID-19) pandemic.

In a statement, SEC said, “Issuers and Market Operators who would not be able to meet the deadline for submission of their audited annual financial statements to the Commission and circulation of same to investors may apply to the Commission for extension of time before the expiry of the submission deadline.”

Issuers of securities to the public and market operators are required to submit their audited annual financial statements to the Commission, not later than three months after the close of their financial year in accordance with Regulations 54 and 33 of L.I. 1728. However, Collective Investment Schemes are required to submit their audited annual financial statements to the Commission and circulate their annual Investor’s Report to their shareholders/unit holders not later than four months after the close of the financial year in accordance with Regulation 50 (2) of L.I.1695.

Similarly, the Ghana Stock Exchange has approved requests for the extension of its deadline for the submission of audited financial statements for the year ended December 31, 2019, made by six listed companies.

The six listed companies include: Enterprise Group Limited, which sought for an extension to April 30, 2020; Intravenous Infusions Limited to April 14, 2020; and Fan Milk Limited to April 30, 2020. The others are Total Petroleum Ghana Limited which also requested for an extension to April 30, 2020; Aluworks Limited to August 31, 2020; and GOIL Company Limited to April 30, 2020.

This was contained in notice issued to the general investing public by the Exchange Monday, March 30, 2020.

GSE trading continues

The GSE has assured all investors that it will remain fully operational on digital platforms, considering all directives that have recently been issued by the government.

“The Ghana Stock Exchange wishes to inform the general investing public that its offices will be physically closed during the period of the restriction on movement. However, trading on the market will continue uninterrupted.

“This is because the Exchange operates its market on an Automated Trading System (ATS) which brokers trade on via the internet and a Wide Area Network (WAN),” it explained.

The Exchange also has a Disaster Recovery Site (DRS) which allows seamless business continuity if the need arises. Consequently, investors will be able to have their orders executed by their brokers who are Licensed Dealing Members (LDMs).