The Financial Sector Conduct Authority (FSCA) has approved amendments to The Johannesburg Stock Exchange (JSE) listings requirements, which would reduce red tape and create an enabling environment for companies listed on the exchange, according to the Johannesburg Stock Exchange (JSE).
The modifications, which will take effect on June 1, are the result of extensive consultation with market players and the FSCA in order to achieve a level of effective and suitable regulation for companies listed on the JSE’s Main Board and Alternative Exchange (AltX).
Andre Visser, Director for Issuer Regulation, JSE: “The global regulatory landscape continues to evolve and it is important that we engage market participants and ensure that we amend the JSE’s listing requirements so that we strike a balance between the regulatory responsibilities of the JSE as well the obligations placed on listed companies by the JSE. As we have done in the past, we will continue to focus on cutting red tape measures through engagement with our stakeholders to enhance the regulatory experience of our market as we ensure the protection of investors”
“The JSE is confident that the amendments are fit for purpose; create an enabling regulatory environment and appropriate level of regulation that will ensure a fair, efficient, and transparent financial market. The amendments have also been aligned with international standards and benchmarks.”
There have been significant improvements that will give issuers more flexibility when undertaking certain corporate actions and transactions. These proposals will provide issuers with significant regulatory and expense relief while also acknowledging the necessity of protecting investors through proper protections. Under some circumstances, the measures will no longer require the preparation of circulars or shareholder approval for the ordinary course of business transactions and intragroup repurchases.
Material shareholders, as natural capital contributors, can now participate in additional capital raising operations via the bookbuild method. Furthermore, the number of occurrences that necessitate the production of amended listing particulars, which incur considerable costs for issuers, has decreased.