SGX RegCo proposes changes to listing review process

Signage at the SGX building on Shenton Way in Singapore; taken October 2018.Signage at the SGX building on Shenton Way in Singapore; taken October 2018.

Singapore Exchange Regulation, or SGX RegCo, said on Thursday it was seeking feedback on proposed changes to the listing review process and to the regulation of issue managers.

The proposed listing review change would change the order of the process to improve efficiency, it said in a statement filed to SGX on Thursday.

Currently, the independent Listings Advisory Committee (LAC), which provides advice on listing applications that meet certain criteria, such as unprecedented issues, also receives other listing applications for information, it said.

The proposed change would require the listing applications which aren’t referred to the LAC be submitted to the committee after the issuance of the eligibility-to-list letter, rather than before, SGX-RegCo said.

“The LAC can still continue to review and advise on non-referral cases if it so decides but its advice will apply prospectively to similar cases,” it said.

Tan Boon Gin, CEO of SGX RegCo, said in the statement that “Market professionals have indicated to us that listing aspirants need shorter exposure to uncertainty in the macro environment during the listing process.”

The proposed changes to the regulation of issue managers would seek to elaborate on the roles, responsibilities and independence of managers of IPOs and reverse takeovers on the SGX Mainboard, it said.

Among the proposed amendments, the rules would set out guidance for deciding whether an asset manager is independent, it said.

“The changes we are consulting on in relation to issue managers underscore their critical role and responsibilities as the gatekeeper for every listing on SGX,” Tan said.

The consultation period on the proposals is open until 28 December, and if implemented, the changes would take effect in the first quarter of the new year, it said.

 

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