SINGAPORE: The Singapore Exchange (SGX) is looking at reviewing listing rules to better protect retail investors of troubled firms.
This was revealed in a letter to the Securities Investors Association (Singapore) (SIAS) from SGX deputy chief regulatory officer Richard Teng.
SGX was responding to SIAS' earlier proposals to safeguard investors of foreign issuers on the SGX.
The exchange said SIAS' proposals have been discussed and considered by its newly formed working committee to review the SGX listing rules.
Among the committee's proposals are to give SGX legal powers to appoint special auditors or other professionals to help or investigate troubled companies.
It added that there could also be a requirement that imposes a minimum notice period before board directors of listed companies can effectively resign.
In the meantime, SIAS said retail investors who own shares from foreign companies continue to face risks in recover their investments "should the untoward happen to any of the foreign issuers."
In a separate announcement, SGX said that it has formed a working committee to conduct a comprehensive review of the listing manual to enhance the robustness, efficacy and relevance of the listing framework in Singapore.
The new committee comprised capital market stakeholders, including representatives from the SGX, Association of Banks in Singapore, Singapore Institute of Directors, law firms, accounting firms and company secretarial firms.
The committee has commenced its review to identify areas of possible enhancements to strengthen Singapore's attractiveness as a capital market.
- CNA/fa
SGX to review listing rules to protect retail investors of troubled firms
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SGX to review listing rules to protect retail investors of troubled firms
