THE JAMAICA STOCK EXCHANGE JAMAICA STOCK EXCHANGE RULES RULES 40 HaRbour Street Kingston, Jamaica, W.I. Telephone: (876) 967-3271-4 Facsimile: (876) 924-9090 WEBSITE: www.jamstockex.com EMAIL: [email protected] [email protected] RULE BOOK Table of Contents Definitions____________________________________________________________ 4 Block Transactions___________________________________________________ 4 Connected Persons___________________________________________________ 4 Control_____________________________________________________________ 4 A Recognised Stock Exchange__________________________________________ 4 Member/Dealer________________________________________________________ 4 Purchase by Company of its own Shares___________________________________ 5 General Rules_________________________________________________________ 5 Powers of Exchange ____________________________________________________ 5 101 Interpretation of Rules____________________________________________ 5 102 Examination of Member/Dealer’s Books and Records___________________ 5 103 Complaints ____________________________________________________ 5 104 Compensation Fund______________________________________________ 6 105 Listing of companies_____________________________________________ 6 106 Delisting of companies___________________________________________ 6 107 Market meetings________________________________________________ 7 108 Closure, reduction, extension or alteration of trading sessions_____________ 7 109 Compilation and publication of list of prices__________________________ 7 Committees of The Exchange____________________________________________ 7 110 Listing Committee_______________________________________________ 7 111 RegulatoryDisciplinary and Committee___________________________________________ Market Oversight Committee (RMOC) 8 Members /Dealers ____________________________________________________ 8 201 Qualification of Member/Dealers___________________________________ 8 202 Application Procedure____________________________________________ 9 203 The Fit and Proper Person Test_____________________________________ 10 204 Misleading names_______________________________________________ 14 205 Name of business_______________________________________________ 14 206 Attorneys______________________________________________________ 14 207 Mergers and Partnerships_________________________________________ 15 208 Members/Dealers’ Books & Records________________________________ 17 209 Financial Returns_______________________________________________ 18 210 Delinquency in Submitting Audited Accounts_________________________ 18 211 Fines_________________________________________________________ 18 212 Suspension for 90 Days Delinquency________________________________ 18 213 Disputes Between Member/Dealers_________________________________ 19 214 Complaints by Member/Dealers____________________________________ 19 215 Advertising____________________________________________________ 19 216 Use of Name on Documents of Offer________________________________ 20 1 February 2010 RULE BOOK 217 Determination of Defaulting Client_________________________________ 20 218 Business with or for Person Expelled________________________________ 20 219 Defaulting Member/Dealer________________________________________ 20 220 Inactive Member/Dealer__________________________________________ 21 221 Member/Dealers in Good Standing__________________________________ 21 222 Trading for Employee of Another Firm______________________________ 21 223 Dealing in Listed Securities_______________________________________ 21 224 Commission___________________________________________________ 21 225 Insurance______________________________________________________ 22 226 Associate Members _____________________________________________ 22 227 Managed accounts_______________________________________________ 22 228 Disciplinary Proceedings_________________________________________ 23 229 Business Continuity & Contingency Plan ____________________________ 29 Trading & Operations__________________________________________________ 30 301 Trading Sessions________________________________________________ 30 302 Quotation Spreads_______________________________________________ 30 303 Board Lots_____________________________________________________ 31 304 Odd Lots______________________________________________________ 31 305 Established Buyer_______________________________________________ 31 306 Established Seller_______________________________________________ 31 307 Determination of Established Buyer or Established Seller________________ 32 308 Limitations____________________________________________________ 32 309 Put-Through Transactions_________________________________________ 32 310 Bargains and Annulment of Bargains________________________________ 35 311 Contract Notes__________________________________________________ 35 312 Clearing of Transactions__________________________________________ 36 313 Closing out Contracts____________________________________________ 36 314 Ex-Dividends, Ex-Rights, etc._____________________________________ 38 Listed Companies______________________________________________________ 39 General Requirements for Listing______________________________________ 39 401 Listing at the Discretion of the Exchange_____________________________ 39 402 Minimum Issued Capital and Number of Share / Stockholders____________ 39 403 Methods of Issue________________________________________________ 40 404 Articles of Association___________________________________________ 47 405 Trust Deeds or other Documents Securing or Constituting Loan Capital____ 49 406 Listing Fees____________________________________________________ 53 Financial Statements_________________________________________________ 54 407 Quarterly Financial Statements_____________________________________ 54 408 Audited Annual Financial Statements________________________________ 55 409 Annual Report__________________________________________________ 55 Other Requirements_________________________________________________ 55 410 Communication of Announcements_________________________________ 55 411 Delisting of Companies___________________________________________ 57 412 Rights Issues and Capitalisation Issues_______________________________ 58 413 Purchase By Company of its Own Shares ____________________________ 59 2 February 2010 RULE BOOK Appendices___________________________________________________________ 60 Appendix 1_________________________________________________________ 60 Take-overs and Mergers______________________________________________ 60 Appendix 2_________________________________________________________ 71 Application For Listing______________________________________________ 71 Appendix 3_________________________________________________________ 74 Listing Agreement__________________________________________________ 74 Appendix 4_________________________________________________________ 78 Memorandum For Listing____________________________________________ 78 Appendix 5a________________________________________________________ 80 Abridged Statement_________________________________________________ 80 Appendix 5b________________________________________________________ 81 Abridged Statement Balance Sheet Form________________________________ 81 Appendix 6_________________________________________________________ 82 Companies' Listing Fees_____________________________________________ 82 Appendix 7________________________________________________________ 83 Model Code For Securities Transactions By Directors And Senior Executives Of Listed Companies _____________________________________________ 83 Appendix 8_________________________________________________________ 86 Policy Statement On Timely Disclosure_________________________________ 86 Appendix 9_________________________________________________________ 91 Corporate Member/Dealer Questionnaire_____________________________ 91 Appendix 10________________________________________________________ 96 Approved Representative Questionnaire_________________________________ 96 Appendix 11________________________________________________________ 105 Attorney Form Of Appointment_______________________________________ 105 Appendix 12________________________________________________________ 106 Member/Dealers' Report And Financial Information_______________________ 106 Member/Dealer’s Statement of Assets, Liabilities and Equity________________ 107 Calculation of Excess or Deficiency of Net Free Capital ____________________ 108 Procedure For Handling Deficiencies in Member/Dealers’ Net Free Capital ____ 109 Auditor’s Questionnaire _____________________________________________ 110 Member/Dealer’s Questionnaire _______________________________________ 112 Report by Member/Dealer’s Auditor ___________________________________ 114 Summary of Securities Owned and Securities Sold Short, at Market Value _____ 115 Schedule of Accounts with Other Member/Dealer _________________________ 116 Schedule of Clients Accounts _________________________________________ 117 Schedule of Directors’ and/or Shareholders’ Accounts _____________________ 118 Analysis of Loans and Overdrafts ______________________________________119 Analysis of Capital and Reserves ______________________________________ 120 Appendix 13________________________________________________________ 121 Management Discussion & Analysis Template Index _____________________________________________________________ 126 3 February 2010 RULE BOOK Definitions Block