Amending the Directives for Listing Securities and the Directives of The Over-The-Counter Market, and approving the rules for submitting the sustainability report to the ASE

Mr. Mazen Wathaifi Chief Executive Officer of Amman Stock Exchange (ASE) said that the ASE has amended the Directives for Listing Securities and the Directives of The Over-The-Counter Market (OTC) for the year 2018, and approved the rules for submitting the sustainability report to the ASE, and he indicated that the Article (15/b-1) of Directives for Listing Securities and Article (8/F) of Directives of The Over-The-Counter Market have been amended to enable the company wishing to decrease its capital by amortizing the treasury shares without suspending its shares from trading, noting that the article before the amendment required the suspension of trading in the shares of companies the Minister of Industry and Trade approves the decrease of their subscribed capital by amortizing the treasury shares as of the trading session following the date on which the ASE is notified by this decision and till all the procedures at the JSC and the SDC are completed.

He added that the aim of the amendment of the provisions of the two articles was to protect the interests of investors and provide shareholders the freedom to trade in the shares owned by them, whose balance will not be affected by the decision of capital decrease by amortizing the treasury shares.

Wathaifi also indicated that in light of the ASE’s belief in its important role in the field of developing and enhancing the investment environment in Jordan, and encouraging listed companies to adopt the best and latest international practices in the field of managing relations between listed companies and all other stakeholders, a new item has been added to the provisions of article (9/A) of Directives for Listing Securities obligating to provide the ASE with an annual sustainability report which has been prepared in accordance with ASE requirements, knowing that ASE requirements have been determined according to a set of rules regulating the filing of sustainability report with the ASE.

He added that in accordance with these rules, the listed companies included in the ASE20 index sample for the first quarter of 2022 will be obliged to issue sustainability reports As of 2022, in accordance with the GRI standards, and the company may add the Transparency topic to the report in accordance with the SDG Impact Standards. The company must submit a sustainability report within six months from the end of its fiscal year if it is separated from the annual report, and the company must submit it with the annual report within three months as of the end date of its fiscal year if it is combined with the annual report.

Wathafi also indicated that this amendment has been endorsed to enhance the attractiveness of the listed companies, and as a first step towards the application of the requirement by the rest of the listed companies gradually, in order to increase transparency and disclosure, especially with regard to compliance with sustainability standards, as the sustainability reporting helps increase knowledge of companies' performance and achievements at all levels (Eeconomically, Ssocially and Eenvironmentally) and it indicates the company's commitment and interest in Eenvironmental, Social responsibility and Governance issues, it also contributes to facilitating access to this information for all relevant parties, and allows these parties to evaluate the company's performance and form a comprehensive view of them to enable these parties to make their investment decisions objectively and clearly.

In addition, the sustainability report helps companies to better and more efficiently identify all potential risks and available opportunities, and their adoption of a sustainable risk management approach provides their management with additional opportunities to enhance their competitive advantage against their competitors and consolidate their good reputation towards all relevant parties, in order to serve their strategic objectives.