Commission, PNGX seal deal for better cooperation

The National Business
Robert Minak

THE PNG Securities Commission and PNG National Stock Exchange (PNGX) have signed a memorandum of understanding regarding the maintenance of an orderly market for listed securities.
It aims to promote cooperation between the two bodies to facilitate an efficient discharge of their roles and responsibilities.
The commission, in the conduct of its roles and responsibilities, may from time to time make public statements about a listed company which a reasonable person would expect to have a material effect on the price or value of the listed company’s securities.
Making such statements during trading hours may not be conducive to an orderly and fair market in those securities.
If making such public statements during trading hours is unavoidable, the:

  • COMMISSION will notify the PNGX prior to making the public statement;
  • PNGX will apply a trading halt to the securities of the listed company; and,
  • COMMISSION will provide PNGX with a copy of the public statement for release to the market as soon as practicable.

Commission acting executive chairman Robert Minak said: “It is fundamental that regulatory governance systems are established to ensure a fair and orderly market. The MoU recognises and respects the differing but complementary roles of the commission and the PNGX in achieving that outcome.” PNGX chairman David Lawrence said: “The capital market regulator in any country plays a critical function in the economy of that country.
“We are pleased to be working with the Securities Commission to put in place processes that promote confidence in the PNG capital market.”