Major Review of Listing Manual
The major review of the Listing Manual is the first since the inauguration of SGX on 1 December 1999. It is being undertaken to ensure that the rules meet the changing needs and reflect current market practices.
Mr Alan Shaw, EVP and Head of the Risk Management & Regulation Division of SGX said, “We want to meet the needs of companies and other market participants while maintaining standards of transparency and disclosure within the SGX marketplace.”
SGX invites comments from market participants and welcomes members of the public to provide their suggestions between now and 30 April 2001 via:
- Email: lm@sgx.com
- Fax: (65) 535-1475
- Mail: Listing Manual Review, Issuer Regulation, Singapore Exchange Limited, 20 Cecil Street, #26-01/08, Singapore Exchange, Singapore 049705
SGX also announced that it will amend the listing rules to adopt recommendations by the CGC in relation to disclosure of corporate governance practices. Clause 912(4) of the Listing Manual will require disclosure of corporate governance practices, and non-compliance with any aspect of the Code of Corporate Governance (Code) in the companies’ annual report. In the case of non-compliance, an appropriate explanation for it will need to accompany the disclosure.
The exchange has made the Code available on its website.
Mr Thomas Kloet, CEO of SGX said, “SGX, as an integral part of the investment framework in Singapore, is committed to the establishment of a disclosure-based regime. We endorse the introduction of the Code, which will further enhance the corporate governance framework in Singapore. Together with the important strategic steps we are taking designed to improve the distribution, product set and liquidity of our markets, an improved corporate governance framework will enhance the appeal of our marketplace to the global investor.”
“A key aspect of change will be the need for listed companies to disclose and explain areas of non-compliance with the Code. The significance of the non-compliance will then be for the market to assess. This self-regulatory and disclosure mechanism is a powerful incentive for companies to comply”, Mr Kloet added.
