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ABS boosts due diligence guidelines for SGX listings

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The Association of Banks in Singapore (ABS) on Friday said that it will raise the standard of its guidelines for due diligence that its member banks should carry out on all companies wanting to list on the Singapore Exchange (SGX).

THE Association of Banks in Singapore (ABS) on Friday said that it will raise the standard of its guidelines for due diligence that its member banks should carry out on all companies wanting to list on the Singapore Exchange (SGX).

Among the changes, the scope of checks by bankers should extend beyond on-site visits to that of material production facilities and properties including material assets. Examples are inventory and biological assets such as livestock and crops.

Bankers should also check on reasons behind recent resignations of management and directors, as well as reasons for restrictions on cash remittances from the issuer's overseas subsidiaries to the holding company.

"The improvements made to the guidelines will help Singapore draw more quality listings, and grow investors' trust and participation in our market," said Ong-Ang Ai Boon, director of ABS.

Tan Boon Gin, chief regulatory officer at SGX, said that this enhancement is crucial as issue managers and full sponsors are ultimately responsible for the due diligence on companies, and the quality of the companies that they sponsor for listing.

"These efforts will in the long run also improve the overall equities market."