Thursday, 15 March 2012

Investigation into China Sky's affairs ongoing: SGX

We refer to Mano Sabnani's letter titled 'China Sky must be kept functional' (BT, March 13).

As the frontline market operator, the Singapore Exchange (SGX) is responsible for maintaining a fair, transparent and orderly marketplace in the interests of the investing public. For this purpose, the exchange requires prompt and comprehensive disclosure of information by companies. Only then can investors properly assess the risks and rewards of their investment to make their investment decisions with confidence.

If companies' disclosure is inadequate, the exchange will query them with the aim to clarify, and where appropriate, elicit disclosure. If the information is questionable or its reliability in doubt, the disclosure will be investigated so that investors can have confidence in the data used as a basis of their investment decisions.

However, SGX does not operate listed companies; it is the responsibility of the management and the board of directors, who determine the course and nature of their companies. Shareholders have the right and authority to compel the managements and boards to act for them and safeguard their interests in the companies.

Mr Sabnani and likeminded shareholders can seek an EGM or work with investor organisations like SIAS.

SGX shares the concerns of shareholders of China Sky Chemical Fibre that knowing the true and accurate state of affairs of the company is critical. However, the matter is currently under investigation. Hence, the exchange is unable to comment further.


No comments:

Post a Comment