21 June 2012
Mr Yap Koon Hong
Forum Editor
The Straits Times
Dear Mr Yap
Compliance with Listing Requirements
We refer to the Straits Times letter, “SGX shouldn't ignore investors' delisting concerns”, published by Mr Gary Teo, on 18 June 2012.
All companies listed on SGX have met our admission requirements and undertake to abide by the SGX Listing rules. As a market operator, SGX upholds these rules to maintain market quality and standards.
The Watch-List was introduced in 2008 to provide investors with greater visibility of listed companies registering 3 consecutive years of losses and whose market capitalisation has fallen below S$40 million. Shareholders are able to benefit from the information in order to make their investment decisions relating to the companies.
These companies are required to provide the market with quarterly updates on their financial situation so that shareholders are alerted to the risks that the companies may face delisting if they fail to satisfy the stipulated criteria in the listing rules.
For companies which no longer meet or are unwilling to comply with the minimum listing requirements, SGX will have to administer its delisting provisions as other jurisdictions do. Boards and their managements are aware of their duty to maintain compliance with the listing requirements in the interest of their shareholders.
In the event that a company faces the prospect of an involuntary delisting, the Boards and management should present an exit alternative. Where it is not possible to do so, Boards and management have to disclose the reasons and explain to shareholders.
In the case of the Style Merchant and Firstlink Investments which were highlighted, the respective companies had explained and disclosed the reasons for lack of exit offers. These circulars, on 17 January 2012 and 2 November 2011, are available on SGX website.
We would appreciate it if the Straits Times could publish our reply. Please feel free to contact me or my colleague from Corporate Communications, Joan Lew, at Tel: 6236 8568 if you need further clarification.
Thank you.
Mohamed Nasser Ismail