Jordan Capital Market Development Flash

The Jordan Securities Commission has issued new instructions concerning procedures to be taken vis-à-vis companies listed on the Amman Stock Exchange, whose accumulated losses reach %50 or more of their paid-up capital. The instruction specify three categories of companies, those that accumulate losses between 50%-75% of their paid up Capital; those that accumulate losses between 75%-100% of their paid up Capital; and those that accumulate losses more than 100% of their paid up Capital.
Procedures to be undertaken focus on an intensification of the disclosure process, the provision of re-structuring plans and in certain cases suspending trading in company’s shares.
According to the JSC, these measures will increase the transparency, efficiency and fairness in the local capital market.