Singapore Bourse Unleashes Tougher Listing Rules

Following the suspension this year of at least three companies for accounting irregularities, the Singapore Exchange (SGX) has made key changes in its listing rules that will take effect September 29, reports Channel News Asia.

 

The tougher rules include requiring companies to disclose if a controlling shareholder has pledged any shares as part of a loan covenant.

 

Listed companies will also have to disclose information about their legal representatives and the risks relating to their appointment, including how much authority is concentrated in their hands.

 

CNA further says that SGX will also require companies to make sure their auditing firms are registered with the Accounting and Corporate Regulatory Authority or an acceptable independent body such as the International Forum of Independent Audit Regulators.

 

Most companies which have been suspended this year have been Chinese based firms, commonly known as S-chips.

 


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