ADX Requires Listed Companies To Submit Audited Financial Statements Within 45 Days Of Quarter End

The Abu Dhabi Securities Exchange (ADX) has mandated that companies listed on the exchange must reveal the agenda and timing of their Board of Directors meetings. These meetings, which discuss issues impacting stock prices, should be disclosed at least two business days before the meeting date. This requirement aims to ensure transparency and timely information for investors.

In a recent circular, ADX specified that any decisions made during these meetings must be announced immediately after they conclude, but not on the same day. For instance, if a board meeting is scheduled for Friday, 27 September 2024, the agenda and schedule must be disclosed by Tuesday, 24 September 2024. Failing to do so would breach market disclosure regulations.

ADX has also instructed listed companies to submit their third-quarter financial reports in both Arabic and English through the Disclosure Electronic Services (E-Services). This step underscores the importance of transparency in financial disclosures for investors and securities dealers. The exchange emphasises that accurate and timely financial information is crucial for market integrity.

According to the circular, companies are required to submit several specific reports to ADX. These include a comparative quarterly report for the same period of the previous fiscal year. This report should contain audited financial statements and be submitted within 45 days after the quarter ends. Additionally, it must include a Board of Directors' report or a Management Discussion & Analysis (MD&A), signed by either the Board or an authorised representative.

The financial reports provided by listed companies must be approved by their executive management and prepared according to International Financial Reporting Standards (IFRS). Ensuring compliance with these standards helps maintain consistency and reliability in financial reporting across different companies.

Financial statements should be disclosed either before or after trading sessions as per ADX’s Disclosure Guidelines for Public and Private Joint Stock Companies. If financial data is not disclosed by 9:00 AM, trading will be suspended from 9:00 to 9:30 AM to ensure market safety and complete internal procedures. Trading can resume after 9:30 AM if data is received during this period.

This structured approach by ADX aims to enhance market transparency and protect investor interests by ensuring that all relevant information is available promptly and accurately.

With inputs from WAM