Securities Commission of Papua New Guinea

The previous uncertainty about the Chairmanship of the Securities Commission has been a significant barrier to both development of the capital market in Papua New Guinea and the ability of companies, large and small, to access capital.

“Resolution of the leadership of the Securities Commission provides the certainty the market has been seeking and needing. PNGX thanks Prime Minister James Marape for his leadership in brokering the resolution to this long-running dispute,” said PNGX chairman, David Lawrence.

This news now paves the way for the Government to consolidate and appoint a permanent chairman going forward.

The Securities Commission of PNG is responsible for the growth and development of the organic capital market. It is, therefore, important that the stakeholders are not confused as to the leadership of this regulatory body.

“I am relieved that this matter is now resolved and that the market can respond to any regulatory imposition with confidence and clarity,” stated the PM.

The injunction against the orders of the Securities Commission of PNG now allows for the recommencement of trading of its shares on PNGX.

On June 2^nd, the Securities Commission of PNG issued orders suspending the trading of Oil Search Shares on PNGX, allegations that Oil Search breached the PNG Capital Market Act by failing to obtain approval from the Securities Commission for the PNG Retail component of its recent capital raising.

The orders issued by the Securities Commission of Papua New Guinea follow alleged breaches of the PNG Capital Market Act.

In a statement issued on Wednesday, Oil Search says it will legally challenge the orders.

According to Oil Search, the company had obtained valid approvals for its recent capital raise, completed on 28 May 2020, from the Executive Chairman of the Securities Commission of PNG.

However, the Acting Chairman of the Securities Commission of PNG issued orders including that trading of Oil Search shares on PNGX be suspended from 2 June 2020.