Corporate governance is incorporate in regulation of stock markets in 2002. For fully incorporation of this governance all the registered companies have to disclose their annual reports in stock markets, whether they are bind to complying their provision or not, and if not then they have to explain it why they don’t.
Main reasons for the implementation of this governance in stock markets are;
- To limit the abusing of power inside.
- Monitoring of behavior of management for ensuring the accountability of the corporate and making easier the protection of the society as well as investors of stock markets.
Exchanges of the country are also responsible for the giving full protection to the shareholders of small budget of stock markets and their interest, along with this they will be monitoring and strengthen their capabilities.
Exchanges are fully authorized to take any action against those companies are not able to comply all the requirements of regulation of stock markets listing which are follows;
- Failed to declare their dividend report of last five years;
- Failed to arrange their annual meetings for last three years.
- Has been surrounded by liquidation in stock markets either by its own wish or under the pressure of any court order.
- A company failed to submit its annual listing fees for last two year continuously.
- If a company failed in joining CDS after the acceptance of its securities as eligible security from the CDC in stock markets.