SGX's new rule: clarity needed

THE Singapore Exchange's (SGX) recent attempt to enhance its regulatory might was put to its first major test this past week, when Temasek Holdings made an offer for Olam International. The jury is still out on how effective SGX's new rule is, but the incident has definitely highlighted its practical issues.

The rule in question requires listed companies to notify SGX on a confidential basis if they are in discussions that could lead to a takeover. It was one of several new rules that came into effect on March 3, as part of SGX's attempt to "enhance its regulatory tools in line with international standards".

SGX brandished the new rule on Sunday, in its response to criticisms in the media as to why it, as regulator, failed to …