Africa-Press – South-Africa. The JSE on Wednesday asked for public input on its plans to simplify its listing requirements to fend off a wave of delistings that has plagued the operator of Africa’s largest bourse in recent years.
The exchange said on Wednesday it had embarked on a simplification project aimed at reducing the volume of requirements and their complexity, with the use of plain language expected to help create a more enabling listing environment that will attract more companies.
“As we continue to create this enabling listing environment, a core component of the Simplification Project is to maintain the level of regulation and transparency in disclosure that the South African financial markets have grown accustomed to,” said André Visser, director of issuer regulation at the JSE, in a statement.
The JSE plans to implement its simplification project over the next 12 to 18 months with the process involving a staggered and open consultation process. The JSE has launched a dedicated project portal and has released its first four simplified sections. These are General Powers of the JSE; Sponsors; Transactions and Related Party Transactions. Consultation runs until the close of business on 23 October and the portal can be accessed here.
The JSE first proposed simplifying its listing requirements in a consultation paper released in May 2022 and says it has received overwhelming support for the process, which is aimed at ensuring the bourse is fair, efficient, transparent and competitive.
Other initiatives
The JSE has already introduced amendments to its listing requirements and debt listing requirements, having taken steps to expand on its offerings in specialist securities, such as actively managed exchange traded funds.
It has also introduced weighted voting shares for applicants seeking a listing. The proposed amendments are accompanied by appropriate safeguards to afford the necessary investor protection and will allow the JSE to remain competitive and to attract new listings. It has also reduced the 20% free float threshold to 10% in line with changes in the UK and European Union, which refers to the proportion of securities available for public trade.
It is also making amendments in line with international markets to ensure that it remains attractive for special purpose acquisition companies – or shell companies established with the purpose of taking over another company.
Also following on its initiatives, the JSE removed the obligation to produce an abridged report when the issuer has published its audited annual financial statements on the issuer’s website. The JSE further simplified the financial reporting requirements and removed provisions that do not provide regulatory value.
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