Currently foreign companies can be listed on ASX as 'Foreign Exempt' provided they have net tangible assets of $A50 million, or profit before tax in each of the previous three years of $A10 million.
'Foreign Exempt' companies are not subject to most ASX listing rules, including LR3.1 (Continuous Disclosure), but instead are required to lodge with ASX all periodic reports and notices provided to their home exchange.
Under the amended listing rules, the threshold for admission to the 'Foreign Exempt' category will be increased to $A2 billion of net assets and $A200 million profit after tax in each of the previous three years.
'Entities seeking to be listed on ASX as 'Foreign Exempt' will have to meet the same criteria for admission, regardless of where they have their primary listing or which country they may be domiciled in," ASX Executive General Manager, Investors and Companies, Mr John McMurtrie, said.
The amended rules are intended to take effect from 30 June 2002. In the meantime ASX has placed a moratorium on applications for all 'Foreign Exempt' listings.
"All companies currently listed as 'Foreign Exempt' are welcome to convert to full ASX Listing if they meet the admission criteria, or to remain as 'Foreign Exempt' if they consider that more appropriate, provided they meet the new threshold."
There are currently 41 companies listed on ASX as 'Foreign Exempt'
