SGX Publishes Listing Rule Waivers With Reasons

Singapore Exchange Limited (SGX) today introduced a new initiative to enhance transparency in the markets by publishing the rule waivers and the basis for granting the waivers to listed companies. SGX has also included the reasons for the rule waivers to provide market participants with a better understanding of the basis of approvals. SGX will publish the waivers quarterly, beginning with the period from July 2008 to September 2008.

Approval and grant of waivers

The listing rules promulgate initial listing criteria, corporate disclosure policy and other continuing requirements to maintain a fair and transparent marketplace. From time to time, companies seek exemptions from compliance with specific listing rules in view of practical and operational constraints. Most of these waivers are non-contentious in nature and do not pose regulatory risks. A typical request from some newly listed companies is a time extension for releasing their first set of financial results, especially when such releases are to take place shortly after their listing on SGX.

SGX will grant such waivers, where necessary and warranted, if the interest of the investing public is not prejudiced. Waivers granted are normally limited in timeframe or qualified according to the unique circumstances encountered. In some instances, conditions are imposed on the waivers to address specific regulatory risks that may arise.

Detailed disclosure

Under current practice, issuers are already providing timely disclosure and announcements of rule waivers granted by SGX via the SGXNET. In these announcements, companies will have to set out the details of the waiver granted, reasons for seeking the waiver and the conditions (if any) imposed by SGX. The disclosures foster assurance that waivers have been given in a consistent manner by SGX. Other companies facing the same situation gain awareness that they could seek similar waivers. A fair and level playing field is maintained.

To enable greater ease of access to investors and other market participants, SGX has decided to collate the waivers granted and publish them on a quarterly* basis on the SGX website. The Exchange will also categorise waivers granted on a rule rather than on an individual issuer basis, so as to focus on the logic of the waiver and, if necessary, the general reasons for granting it. The identities of issuers that have been granted waiver from a specific rule will also be disclosed; so that investors can cross-reference them to the issuers’ announcement should they require more detailed information on the context of seeking the waiver and the relevant transactional information.
* The list of waivers granted will be published within two weeks of the end of each quarter.

This initiative is part of SGX’s ongoing efforts to encourage greater transparency and enhance disclosure. Some of the previous initiatives included the enhancement of “Appointment” and “Cessation” announcement templates, the introduction of ‘Watch-List’ for mainboard companies, and the prompt disclosure of grant of employee share options by companies, to name a few.