SEO
Home / News

Tangible Improvement in Issuers Disclosures

Securities and Exchange Organization modified three main regulations last December, mainly concerning disclosure of information by issuers.

Securities and Exchange Organization modified three main regulations last December, mainly concerning disclosure of information by issuers. The regulators have attached great importance to the markets transparency and information symmetry in the recent years. An output of it was the new SMS notifications sent to the top managers of issuers before the deadlines or in case of a violation in their reports. SEO claims the move has tremendously improved the timely reporting of the issuers.

Deputy for Supervision on Exchange and Issuers at SEO Hassan Amiri mentioned that the average delay for posting monthly reports was 3.6 days back in December but has dropped to 0.9 days in April which shows 75 percent decline. Since its launch, 4500 messages have been sent, out of which 89% were deadline notifications and 11% were warnings about violations in reporting, according to Amiri. The share of issuers of Tehran Stock Exchange and Iran Fara Bourse were 64% and 36% respectively.

Amiri Explained that the diagnosis of violations in the past couple of years revealed that the majority of delays and negligence in reporting was because of managers’ lack of awareness about the regulations and very few cases were intentional. Many top managers had failed to establish an orderly reporting mechanism within their entities which exposed members of their boards to violations and cash penalties.

Therefore, in accordance with Regulations on Disclosure of Information by Issuers and to adopt preventive measures and educate managers, the system sends notifications a few days prior to the deadlines of mandatory financial reports to the top managers of companies. Amiri also emphasized that not receiving the notifications does not relieve the issuers of their disclosure responsibilities, nor can it be raised as an excuse.