SGX To Launch Phase Two Of Research Incentive Scheme

SGX-listed companies and research firms will be invited to participate in this phase of the scheme from today. The list of participating research firms and listed companies will be announced when responses have been received and collated over the next month or so.

Under phase two of the scheme, research firms are required to produce a minimum of one initiation of coverage report within six months of allocation, one update report, and two coverage of results reports, corresponding to the half- and full-year results announcements by the listed company.

Each research firm will receive an annual sum of S$75,000 for every 15 stocks covered, to help defray the costs of providing the research coverage. This will continue to be funded from the S$7.5 million pool of funds jointly established by SGX and MAS in June 2003 for developing the securities and derivatives industry. Participating listed companies will pay an annual fee of S$8,000.

Phase two of the scheme will be offered for a period of one year, after which it will be reviewed by SGX and MAS, together with phase one of the scheme.

The SGX-MAS Research Incentive Scheme has attracted more than 20,000 registered users. Many listed companies and research firms have expressed interest in being part of the scheme, indicating a demand for investment information.

"With the extension of the scheme into its second phase, investors can continue to enjoy convenient access to research on even more listed companies. This scheme will also help raise the profile of our listed companies, and further enhance the attractiveness of SGX as a listing venue," said Mr Gan Seow Ann, Executive Vice President and Head of Markets at SGX.