Press Release

Announcements of 2006

As the Commission noticed, several companies did not know much about the CPA Order no.74 of 2004 interim Law on Securities Markets, and no commitment was sensed with regard to disclosure and submission of periodic and annual reports as required pursuant to the said law. Taking into account the importance of the financial disclosure and reporting, the importance of preserving shareholders’ rights, the improvement of market sustainability allowing it to play a sound role in the financial industry and encourage investors to trade securities, the Iraqi Securities Commission has reminded the companies listed on the ISX about their obligation to comply with the law. It has issued a letter numbered 6/415 of September 18th, 2005, which was followed by direct letters sent by the Commission to the companies listed on ISX, from the 25th to the 31st, of March 2005. On February 16th 2006, the ISC has held a public session to which listed companies were invited, and during which the specialists of the Commission explained the legal requirements for the disclosure of information to shareholders and investors, as well as for the submission of reports and statements to ISC and ISX. Moreover, attendees were provided with a package including a copy of the interim Law on Securities Markets and a CD containing the requirements of disclosure, as explanatory tools for the staff members of the concerned companies.

As some companies did not respond to the anouncement, the commission decided to give the companies an extra grace period of 45 days. After this period, non-compliant companies will be fined and the trading of their shares will be suspended until the submission of the required statements and reports. This decision was published in Azzaman and Al-Sabah daily newspapers on April 29th and 30th, 2006 successively. Most of the companies responded to ISC request. The companies which did not respond will be subject to a trading halt starting August 1st, 2006. After the submission of complete required documents, after payment of the fines set forth in the decision and after filing the additional information requested, the Commission will reconsider the resumption of companies’ trading on ISX.

ISC encourages all the listed companies to review the interim law no. 74 of 2004, as to know their rights and obligations, file the annual and periodic reports and statements within the deadlines set forth by the law, i.e. 150 days after the end of fiscal year for the annual statements and 60 days after the end of period or term for the periodic reports. This procedure is provided by the law as basic disclosure. As a result, an outlet for new investors in capital market will be found and trust in shares transacted will be strengthened. The Commission is ready to help all investors and issuers, or answer their questions at the address or phone numbers listed bellow:

The address of the ISC is Baghdad, Mansour, Hay Al-Mutanabi, Section 603, Street 48, house 2

Chairman of the Commission phone number: 7407022

ISC phone number: 5421750

Announcement published in Al-Sabah daily newspaper

Pursuant to the announcement published in Al-Sabah newspaper on April 30th, 2006 and published in Azzaman newspaper on April 29th, 2007,

ISC has reminded the companies listed on ISX about the submission of their reports and statements within the period set forth by the law, i.e. 150 days after the end of the fiscal year. To emphasize the issue, ISC has decided the following:

Companies delaying the submission of reports and statements for more than 210 days after the end of the fiscal year shall be subject to a fine of 1 million ID for each month of delay.

In addition to the fine mentioned above, the trading of the shares of the company that delayed submission for more than 270 days after the end of the fiscal year shall be suspended.

This decision will be enforced for 1 year as regards reports and statements of 2005. All companies have to file their annual and periodic statements within the deadlines set forth by the law, 150 days for the annual statements and 60 days for the periodic statements.

The Commission is seeking full cooperation of the companies for the benefit of the investors and of the general public.

Abdul Razzaq Al-Saadi

Chairman of the Iraqi Securities Commission

Invitation to Joint Stock Companies listed on ISX

Subject: Stock Certificates

The commission sends you its greetings……

In order to protect the rights of the shareholders, and control certificates of stocks of listed companies not received by their owners for more than a year, the commission decided to:

  1. Invite the shareholders above through local papers, or letters to take possession of their certificates within a month from the date of this announcement.
  2. The certificate issued and not claimed within the above mentioned period shall be cancelled.
  3. Each listed company shall draw a list with the names of the certificate holders of its stocks with shareholder’s ID number and actual balance of funds.
  4. A copy of the list shall be kept in the shareholders’ department of the issuing company and a copy shall be sent for follow up to the internal control and comptroller.
  5. A stock certificate will be issued for each shareholder listed, and delivered to the shareholder or to his authorized representative.

With regards…

Abdul Razaq Dawood Al-Sa’di

Chairman of the Iraqi Securities Commission