SGX Introduces Transition Measures for Catalist Non-Sponsored Companies

The FINANCIAL — Singapore Exchange Limited (SGX) on SEptember 1 announced measures to manage the transition process of Catalist Non-Sponsored (Catalist-NS) companies to the Catalist’s sponsored regime. It was announced on 4 February 2008 that Catalist-NS companies would be given a period of at least two years to undertake this process.

The measures are intended to achieve a smooth transition for Catalist-NS companies, by requiring them to report on their progress, as well as, appoint a sponsor when undertaking major corporate actions that will have significant impact on shareholders. The measures will apply to Catalist-NS companies for the remainder of the two-year transition period.

The transition period will end on 5 February 2010, which is the Transition Date as defined in the Catalist Rules1.

The transition measures are as follows:-

1. Quarterly Progress Reports on Transition Plans

(a) Catalist-NS companies are required to submit a quarterly progress report of their transition plans to the SGX. The first report must be submitted by 1 November 2008.

(b) Catalist-NS companies are required to announce via SGXNET, a quarterly progress report of their transition plans from 1 January 2009.

2. Major Corporate Actions

From 1 January 2009, Catalist-NS companies must appoint a sponsor and comply with Catalist Rules when undertaking major corporate actions, such as:-

Fund raising from shareholders or the investing public;

Major acquisitions and disposals of assets;

Interested person transactions that will require shareholders’ approval; and

Scheme of Arrangement.

Mr Lawrence Wong, Executive Vice President and Head of Listings, said, “Our objective is to have as many Catalist-NS companies appoint sponsors and retain their listing on Catalist. These measures will help to achieve a smooth transition process, and investors will also be regularly updated on the progress.”

1Companies currently suspended under Rule 1303 will need to comply with the timeline stipulated under Rule 1304. Their resumption proposal will have to be approved by SGX.