Chairman's Statement 1.
Investor protection is based mainly on market transparency and integrity.
Market transparency is ensured through proper disclosure of buy and sell orders, publication and analysis of share price movements but more fundamentally through timely, comprehensive and detailed disclosure by companies seeking a listing or already listed. Integrity is more generally related to the conduct and business practices of market operators who are expected to maintain rigorous standards and to act in the interest of their clients Behind investor protection, there is the ultimate objective of providing a national market that can efficiently serve the development of the economy by being an efficient conduit for the allocation of savings into productive sectors. The willingness of investors to place their savings in listed stocks and bonds depends on confidence in the Stock Exchange based on this integrity and transparency. SEM is allowed to make rules, approved by the Commission, for the conduct and guidance of its member companies. SEM is required to monitor the activities of all stockbroking companies, including inspection of accounts, books and records and the financial integrity of its members.