SGX forms listing, disciplinary and appeals committees

SINGAPORE Exchange (SGX) has formed three independent committees to advise the market regulator on listing, disciplinary and appeal matters ahead of a new disciplinary framework that will take effect next month.

Blackstone Singapore chairman Gautam Banerjee will head the 15-member Listings Advisory Committee, which will advise SGX on admission applications that deal with novel or unprecedented issues, require specialist expertise, affect public interest or any other cases that SGX or the committee leaders deem appropriate.

Citibank Asia corporate regional treasurer Eddie Tan and DBS Bank senior executive adviser Eric Ang will jointly chair the 14-member Disciplinary Committee, which will handle serious breaches of listing rules.

The seven-member Appeals Committee will be led by Senior Counsel and Rajah & Tann regional head of dispute resolution Francis Xavier. The Appeals Committee will offer an avenue for parties to appeal against disciplinary actions.

The immediate impetus for the new committees is the new disciplinary framework that will take effect on Oct 7.

The new framework will give SGX the ability to impose fines on issuers' office-holders and issue managers, as well as to restrict their access to the market. In a response to a public consultation on the issue, SGX explained that the new disciplinary powers offer alternatives in cases where the issuance of warning letters or reprimands is not severe enough and delisting or suspension are too harsh.

The Listings Advisory Committee, meanwhile, is aimed at giving SGX the benefit of an independent, industry-led body that can help SGX to better handle complex or unusual listing applications. SGX estimated that about 30 per cent of the applications in the year ended June 2012 would have been referred to the committee based on current guidelines.

The longer-term objective is to improve the quality of the market in Singapore, SGX chief regulatory officer Tan Boon Gin said.

"All these are long-term measures that will improve market structure as well as processes and this will lead to a better quality market that we think will lead to better quality listings," Mr Tan said.