Aimed at enhancing confidence between companies and shareholders and creating an attractive investment environment, the Capital Market Authority (CMA) issued a decision on guidelines for interaction between public joint stock companies, media, investors and analysts.
This decision allows the principle of equal opportunity for all and supports the relationship between the parties of the investment process.
This will reflect positively on the market and will address the drawbacks that might be the reason why some national and foreign investors have pulled out of the market.
The decision pointed to the importance of setting a framework specifying the interaction instruments and their timeframe and simplifying and explaining the data to the public.
Additionally, it highlighted enhancing the partnership with media institutions to publish and clarify the quarterly and material statements. The decision also obliged the companies to establish a section for the investors’ relations inside each company and conduct an interactive meeting free of charge; where the stakeholders are invited to attend after the disclosure of the companies’ semi-annual or annual statements, in coordination with the MSX within 30 days from the date of disclosure.
The decision allows the analysts to request an additional meeting with the company in case they needed more information and obliged the company to accept the request and specify the time and venue of the meeting.
It also permitted the company to collect requests every two months and respond to them during one meeting. In case the company cannot answer all the requests, it shall clarify its justifications and disclose them via the MSX within five trading days from the date of receiving the request.
Notably, the decision has received a positive response from the companies as they conducted more than 95 interactive meetings from last July to date. The officials at the public joint stock companies commended the role that the decision takes in creating an interactive constructive environment among companies, the media and investors to enhance transparency and investment.
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