Abu Dhabi: The Emirates Securities and Commodities Authority (Esca) said on Friday it has punished five companies for failing to comply with the regulator's disclosure requirements.
Five out of the 120 listed companies were penalised in the first quarter, of which only Tabreed failed to disclose the quarterly financial statements within the 45-day grace period.
The other four companies failed to disclose all the required information within the stipulated timeframe.
"The authority does not only require the disclosure of financial statements within the specified timeframe, but we also need this information to be in full compliance with the disclosure and transparency requirements," an Esca official told Gulf News.
"The companies fined and warned were found in violation of Articles 36 and 37 of the disclosure and transparency regulations," the market regulator said in a statement.
The four companies fined and warned for missing information or requirements were Khazna Insurance, Foodco Holding, Qatar Telecommunications (QTel), and Sudan Telecommunications (SudaTel).
Esca only requires quarterly preliminary financial data revised by the external audit firm and signed by the board of director or the authorised person.
The preliminary financial statements must be presented in the Arabic and English languages, including the board of director's report, the balance sheet, the income statement, the cash flows, changes in equity, and the supplementary notes.
"About 94 per cent of the listed companies complied in full to our regulations and requirements for the first quarter this year, yet we urge all companies to comply in full as this will support the country's stock markets and promote confidence among investors," the official said.
Kuwaiti companies listed on the UAE stock markets, Mazaya, Global, and Public Warehousing, were allowed an extension of the grace period, in-line with the decision taken by the Kuwait Stock Exchange to extend the disclosure period for the first quarter up to May 22, 2008, in mourning for the late Shaikh Sa'ad Al Abdullah Al Sabah, the former Emir of Kuwait.
By Ahmed A. Elewa, Senior Reporter
© Gulf News 2008
