SGX Issues Consultation Paper On Proposed Amendments To Trading Halt, Suspension Of Trading And Cash Companies

Singapore Exchange Ltd (SGX) is inviting public comments on proposed amendments and enhancements to securities listing rules. The revision exercise underscores SGX's commitment to a market-driven, transparent and well-regulated capital market.

The proposed amendments are introduced to improve market efficiency and minimise disruptions to trading. They will also provide added clarity and foster accountability of listed companies. This is a regular exercise and part of SGX's ongoing efforts to keep rules relevant in tandem with the growth and development of the marketplace. The last round of amendments to listing rules in 2005/2006 dealt with improvement of corporate governance.

The main amendments to the listing rules include:-


1. Trading Halt, Suspension of Trading and Cash Companies :

i. Shorten minimum duration of trading halt from 60 mins to 30 mins;

ii. Clarify rules relating to suspension of trading when the issuer is unable to continue as a going concern, and

iii. Allow trading of cash companies with safeguards.

2. Announcement of Grant of Employee Share Option: A new rule will be introduced to require the issuer to make an immediate announcement when employee share options are granted. This will strengthen transparency and accountability in relation to the grant of options.

3. Align all references to Issued Share Capital with the Companies (Amendment) Act 2005.

4. Introduce miscellaneous listing rules, for example, to clarify the application of listing rules for REITs and ETFs.

Market participants and members of the public are encouraged to participate in this public consultation. The consultation paper which sets out the proposed amendments to the listing rules will be available on our website, www.sgx.com, from 10 May to 7 June 2007. All feedback and suggestions for the proposed changes should reach us by 7 June 2007 via email and either by post/courier or fax:-

Email : lm@sgx.com
Fax : (65) 6535 7919
Post/Courier : Singapore Exchange Limited
2 Shenton Way, SGX Centre 1, #19-00
Singapore 068804
Attn: Lorraine Chay, Risk Management and Regulation

Issue date : 10 May 2007