JORDAN: Amman Stock Exchange (ASE) Starts Applying Amended Directives for Listing of Securities

Tuesday February 10 2015

The Amman Stock Exchange (ASE) started applying the amended Directives for Listing Securities on Amman Stock Exchange for the year 2012 as of 9th December 2014 issued by virtue of the provisions of Article (72) of the Securities Law No. 76 of 2002 which was recently amended by the decision of the Board of Commissioners of Jordan Securities Commission (JSC).

It is conditioned for the approval of listing the shares of any company at the ASE to fulfil the listing conditions of the Second Market as of the issuance of the company`s audited financial statements for one fiscal year at least showing an operating activity. The net shareholders` equity in the company shall not be less than (50%) of its paid-in capital. the Free Float ratio for the company at the end of its financial year shall not be less than (5%) if its paid-in capital is less than (10) million Jordanian Dinars. In addition there should not be material qualifications nor a going concern issue in the audit report of the latest financial statements.

The new directive gives delisted companies the right to reapply for listing at the ASE after completing the necessary conditions; one of the most important conditions is removing any reason that may prevent trading its securities.

In regard to the issue of the transferring the shares of companies between markets, the amended directives give the right to the Board of Directors not to transfer the shares of any company from the third market to the second market or from the second market to the first market in case of imposing a disciplinary penalties as a result of violation of these directives through (12) months preceding the date of completing of the conditions for listing transfer.

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