Singapore Exchange Regulation (SGX RegCo) has launched a public consultation on sweeping changes to its regulatory framework, as it moves to implement a more disclosure-based regime aimed at enhancing market transparency while easing compliance burdens for issuers.
The proposed reforms, aligned with recommendations from the Equities Market Review Group in February, seek to foster a pro-enterprise environment while maintaining investor protection and market integrity.
SGX RegCo’s shift reflects a broader move away from prescriptive rules toward empowering investors with timely and material information to make independent decisions.
Among the key proposals is the removal of the financial watch-list, a long-standing mechanism used to flag companies with sustained losses and low market capitalization.
The regulator cited concerns that the watch-list created unintended consequences, such as dampening investor confidence and hindering financing efforts.
SGX RegCo has provisionally suspended the half-yearly reviews that determine entry into the watch-list, pending feedback on its complete removal.
Other measures under consultation include refinements to Mainboard admission criteria.
SGX RegCo plans to streamline qualitative requirements and review the profit test under the quantitative criteria, while maintaining scrutiny over applicants’ financial health and corporate governance.
The regulator also aims to recalibrate its approach to post-listing surveillance, proposing more targeted and proportionate actions such as private engagement for unusual trading activity, limiting trade-with-caution alerts to two weeks, and focusing public disclosures on material information.
SGX RegCo said the new approach is designed to support institutional participation, reduce regulatory friction, and enhance market efficiency.
Ongoing oversight and enforcement mechanisms will remain in place, with continued cooperation with the Monetary Authority of Singapore and other authorities in cases of non-compliance or market misconduct.
The consultation period will close on June 14, 2025.
Business News Asia