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- The GPW Supervisory Board and Management Board have issued a Joint Position on the criteria of admission of shares to trading on the regulated market
- It introduces a clear list of circumstances which could be considered by the Exchange to be inconsistent with the rules of public trading on the exchange
- The changes are designed to improve the safety of trading on the markets operated by GPW
A decision of the Exchange Supervisory Board and the Exchange Management Board effective as of 1 January 2019 introduces a list of cases supporting the assessment of the issuers’ compliance with one of the requirements of admission and introduction of shares and rights to shares (PDA) to exchange trading: compliance with the rules of public trading on the exchange. The requirement has been clarified both with respect to initial public offerings (IPOs) and subsequent issues of financial instruments to be traded on the exchange.
The changes are designed to clarify those circumstances of share issuance which GPW could consider to be inconsistent with the rules of public trading on the exchange and to prevent potential adverse consequences of the introduction of such issues to trading on the exchange.
“We have been consistently implementing measures which improve the safety of trading on GPW. We have drafted and presented market participants with a list of circumstances which the Exchange may consider to be inconsistent with the rules of public trading on the exchange. I believe that the clarification of exchange regulations will help to avoid cases where potentially doubtful securities could be admitted and introduced to trading,” said Piotr Borowski, GPW Management Board Member. “The message for investors and issuers is clear: certain situations and circumstances largely increase the risk that shares may fail to meet the requirements of the admission regulations and should remain outside trading on the exchange,” said Mr Borowski.
Circumstances which could result in refusal to admit or introduce shares or rights to shares to trading on the exchange on grounds of a breach of the rules of public trading on the exchange include, without limitation, significantly different issue prices of shares, doubtful asset valuation, a part of the issue being covered by the admission application without the consent of the shareholders, as well as bankruptcy or administrative proceedings pending against the issuer.
If any of the circumstances listed in the Joint Position on rules of public trading on the exchange occurs in the case of shares or rights to shares, the issuer shall publish such information, which is relevant to the risk of refusal to admit or introduce such securities to trading on the exchange.
For more information, please visit www.gpw.pl
