EGX sets up “D List” for securities facing delisting over non-compliance
EGX releases “D-list” of companies that could be kicked out: The EGX has introduced a naughty list of companies who could face delisting over non-compliance with listing and disclosure rules, the EGX said in a statement on Monday. The bourse released a series of six conditions that would land a company’s stock on the wonderfully named “D-list.” These include violating corporate governance regs and repeated failure to meet disclosure requirements, in addition to other “cases the EGX and FRA deem require the company be delisted.” As a procedural matter, companies that are also about to either voluntarily or involuntarily delist, will see their shares named on the list before actually delisting. The EGX’s listing committee will convene in the coming weeks to determine which companies and securities will be added to the new list, the statement notes.
The “D List” is the latest addition to three other Sesame Street-style grading lists, which include an “A-List” for the most active (get it?) stocks; a “B-List” for stocks seeing medium activity, and a “C-List” for securities that do not see enough activity to qualify for listing. Might we recommend that the stats on the stocks that will go on the lists be tallied by the Count.