The Johannesburg Stock Exchange (JSE), The operator of Africa’s biggest bourse, announced on Wednesday (May 4) that the Financial Sector Conduct Authority (FSCA) has approved amendments to its listings requirements, which will reduce red tape and create an enabling environment for companies to pursue a listing.
The amendments, which will come into effect on June 1, are a culmination of a comprehensive consultation process with market participants and the FSCA aimed at achieving a level of effective and appropriate regulation for companies listed on the JSE’s Main Board and Alternative Exchange (AltX).
“The global regulatory landscape continues to evolve and it is important that we engage market participants and ensure that we amend the JSE’s listing requirements so that we strike a balance between the regulatory responsibilities of the JSE as well the obligations placed on listed companies by the JSE. As we have done in the past, we will continue to focus on cutting red tape measures through engagement with our stakeholders to enhance the regulatory experience of our market as we ensure the protection of investors,” said Andre Visser, JSE’s director for Issuer Regulation.
The Exchange said that important enhancements have been made that will afford issuers with more flexibility when undertaking certain corporate actions and transactions. These measures will result in significant regulatory and cost relief for issuers, however still recognising the importance of protecting investors through appropriate safeguards. The measures, to name a few, apply to ordinary course of business transactions and intragroup repurchases where the preparation of circulars and shareholders’ approval will no longer be required under certain circumstances. Capital raising measures have been expanded to allow material shareholders, as natural contributors of capital, to participate in more capital raising initiatives utilising a bookbuild process. Furthermore, the events requiring the preparation of revised listing particulars, at significant costs to issuers, have also been reduced.
“The JSE is confident that the amendments are fit for purpose; create an enabling regulatory environment and appropriate level of regulation that will ensure a fair, efficient, and transparent financial market. The amendments have also been aligned with international standards and benchmarks,” added Visser.