SGX removes financial watch list, stops issuing public trading queries

New measures part of move to a more transparent, disclosure-based regime

- Sue-Ann Tan

The Singapore Exchange (SGX) will no longer keep a financial watch list, and will engage privately with companies instead of issuing public trading queries as part of efforts to move towards a more transparent, disclosure-based regime.

These new measures, among others, were announced by the Singapore Exchange Regulation (SGX RegCo) after the market closed on Oct 29, and come after the exchange's regulatory arm first proposed adopting a less prescriptive regime in May.

The new approach will enable companies to make their own disclosure decisions as long as they fully disclose material information to investors.

The measures are also based on recommendations by a review group set up by the Monetary Authority of Singapore in August 2024 to boost liquidity and raise investor interest in the Singapore stock market.

For companies that want to list, SGX RegCo will retain key criteria to ensure that only issuers “with strong governance and financial health” are listed, it said.

This means that unmodified audit opinions remain mandatory to ensure companies comply with financial reporting standards.

Issuers must still confirm they have secured approvals and met legal requirements that could materially impact their operations.

More firms will find it easier to list, as SGX RegCo will lower the profit test threshold for new listings from $30 million to $10 million, aligning with other major exchanges.

SGX RegCo said it recognises that pre-revenue companies with strong growth potential in emerging industries may be suitable for SGX mainboard listings, even if they may not meet traditional financial criteria due to the unique circumstances of their industries.

Admission requirements have also been refined for certain industries, such as for pre-revenue life science companies.