Friday, 13 July 2012 09:09
The Securities and Exchange Commission (SEC) has urged listed companies on the Ghana Stock Exchange to ensure a timely flow of information to boost investor confidence and improved market efficiency.
Speaking at a forum for listed companies, Mr Adu Anane Antwi, Director General SEC, said poor governance and lack of information could lead to loss of investor confidence with negative consequences for market activities.
The forum, organised by the Ghana Stock Exchange was to share with senior officers of listed companies the importance of information to the market and its impact on share prices of the companies.
The meeting discussed issues including electronic reporting for faster and easy dissemination, disclosure of information and continuing listing obligations.
Mr Antwi said the continuous disclosure of information by listed companies would among others help fight fraud, corrupt practices and enhance market efficiency.
However, he said, most companies were failing to abide by the rules because of weak corporate laws and lack of effective enforcement and warned that SEC would sanction defaulting companies.
Mr Antwi said in order to improve the reporting system, SEC was working on a new electronic reporting system to facilitate timely and speedy disclosure and delivery of information.
He also encouraged companies to explore innovative ways such as the use of mobile phones to send information on their activities to shareholders.
Mr Kofi Yamoah, Managing Director, Ghana Stock Exchange, said companies must ensure simultaneous and equal access to same information to investors to enable them make inform decisions.
He said proper dissemination of company information such as annual and quarterly reports, changes in board membership and appointments could be of benefit to all parties.
Mr Patrick Kingsley Nyinah of Oak Partners said companies should see the Exchange as the first platform for dissemination of information regarding their operations to the market while other outlets could be used as complements.
He said the timely and structured dissemination of price sensitive information was very important for investors to arrive at a fair market valuation for a listed security.
Mr Nyinah called on companies to establish a dedicated investor relations department and dedicated persons should be charged with disseminating information to the exchange and other outlets.