S'pre stock exchange unveils new draft listing rules: Report

S'pre stock exchange unveils new draft listing rules: Report

SINGAPORE (Dow Jones): The Singapore Exchange, or SGX, Friday released the first draft of its proposed revisions to rules for listing of companies on the bourse, the Business Times reported Saturday.

The major changes proposed by SGX include allowing applicants for listing on the exchange's mainboard to have a public float below the 25 percent currently required provided their market capitalization exceeds S$300 million (US$171.43 million), the newspaper reported.

The lower public float, subject to a floor of 12 percent, has been proposed in response to the difficulty faced by issue managers in meeting the 25 percent requirement when bearish conditions prevail and the market is unable to absorb a large initial public offering, the report said.

This difficulty has led to many applicants seeking waivers from the rule, the SGX said, according to the report.

The exchange also proposes to reduce the minimum number of public shareholders required for mainboard applicants from the current 1,000 to 500. But to ensure that there is sufficient public interest to justify a listing, each of the proposed minimum 500 shareholders must hold a parcel of securities worth at least S$2,000, the report said.

The proposed amendments are part of the reforms undertaken by the SGX to update its regulations and to ensure greater transparency, the report added.

Apart from overhauling the listing rules to meet changing needs and to reflect current global market practices, the listing manual will also be reorganized to make it more user friendly, the SGX said, according to the report.

Other changes proposed include listing procedures, covered warrants requirements, prospectus disclosure requirements and continuous disclosure, and clarification of the exchange's powers with regard to suspension and delisting of companies, the report added.

The SGX's proposed amendments are subject to the approval of the Monetary Authority of Singapore, the report said.

Meanwhile, the chairman of The Singapore Exchange Ltd., J.Y. Pillay, was additionally "designated as an executive and non- independent director" of the company on August 16, the company which runs the local bourse said in a statement late Friday.

In a brief statement, the exchange said the move by its board was "in recognition of the amount of time the chairman spends on the affairs of the company."

However, the change in Pillay's status doesn't affect the division of responsibilities between him and chief executive Thomas Kloet, the company said.

"Notwithstanding the designation, the CEO remains the most senior executive in the company and bears executive responsibility for the company's business, while the chairman bears responsibility for the workings of the board," it said.

According to a Business Times report published Saturday, an exchange spokesman said that change in Pillay's designation has been approved by the Monetary Authority of Singapore.