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SGX changes rules on significant transactions
THE Singapore Exchange will soon require listed companies to keep a "privy list" for all material transactions rather than just for certain significant transactions such as takeovers, it said in a press release on Tuesday.
Such a list contains details of parties privy to the transaction. The SGX currently requires a "privy list" to be maintained only for certain significant transactions such as takeovers, reverse takeovers or very substantial acquisitions, it noted.
The bourse will also remove a rule that requires listed companies or their controlling shareholders to privately inform it about significant transactions before news of the transactions is made public, it added.
Feedback gathered via a public consultation "showed an overall lack of consensus on the right timing for such private notifications by companies and/or controlling shareholders", the bourse said.
It said that it had introduced the privy list maintenance rule and private notification rule in March 2014 "to help the exchange's surveillance of unusual trading in shares of companies involved in significant transactions".