SGX RegCo to investigate potential listing rule breaches by Regal International

SGX RegCo, the regulatory arm of the Singapore Exchange, on Friday (Sep 29) announced it will investigate potential breaches of listing rules by mainboard-listed Regal International .

Regal, whose stock is suspended from trading, underwent an independent review following notices of compliance from SGX RegCo in 2021 and 2022. The reviewer, Deloitte & Touche, investigated certain transactions between Regal and its substantial shareholder, Twin Revenue.

In findings submitted to SGX RegCo and Regal’s audit committee on Friday, Deloitte made no adverse findings from its review of transactions between the company and Twin Revenue.

However, the review flagged various internal control weaknesses in Regal’s acquisition and disposal procedures, as well as potential contraventions of the listing rules. These matters were related to Regal’s disposal of its subsidiary, Upright Strategy, to Twin Revenue.

Potential breaches of the listing rules include:

• Inaccurate disclosure of the relative figures computed
• Incomplete disclosure of required information
• Failure to consult the exchange on the application of the listing rules
• Inadequate procedures and internal controls over the group’s review and approval of significant transactions

After its further investigations, SGX RegCo will refer the potential contravention of the Companies Act to the relevant authorities.

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Separately, Regal will need to submit a proposal to SGX RegCo that provides clarity about the company’s financial position, including the convening of annual general meetings to approve its outstanding financial statements.

The company’s latest announced unaudited and audited financial statements relate to the financial periods ended Mar 31, 2021, and Dec 31, 2019, respectively.

Regal’s proposal will also need to rectify the internal control weaknesses highlighted.