News

JSE Sanctions Ayo Technology Solutions Over Related Party Transactions

In business, the big stick is something many would rather not see wielded on them. But then, regulatory infractions sometimes make this inevitable. That’s the case Ayo Technology solutions is contending with right now.

the Iqbal Survé-linked IT group has been fined R1.5m by the Johannesburg Stock Exchange and also publicly censured for what the course called abuse of its listing requirements with related parties.

according to the bourse, Ayo failed to comply with the requirement of transactions with related parties and it had to penalise the company for that infraction – understandably as a deterrent to other companies who might want to tow a similar line.

Although the company applied for a reconsideration of the JSE’s decision, it was declined. AYO’s application to the Financial Services Tribunal for suspension of the JSE’s decision was rejected, which makes the JSE’s verdict on the company enforceable.

As a result of the issues with the JSE, the company’s share price had a massive slump, dropping to R2.40, from an initial high of R40.

Ayo is reportedly committed to paying the penalty but also made it clear that the sum will severely affect its operations. Time will tell how well the company survives the sanction.

Back to top button