Singapore Exchange proposes to tighten listing norms

The Singapore Exchange plans to tighten its listing rules in a bid to raise the standard of corporate governance. The move follows a series of corporate scandals.

As part of its annual review, the exchange has recommended a tightening of the regulatory measures and an expansion of the role of the issue managers. The companies seeking listing on the exchange need to have two independent directors permanently on their board under the newly proposed rules. Foreign-listed companies will also be required to have a third independent director, who is either qualified to advise on local corporate laws or must be another resident director or an officer in executive capacity who resides in Singapore. The association of issue managers with the listed companies is also proposed to be raised from the present one year to two years. The exchange is seeking public feedback on its proposals and expects to implement the changes in the fourth quarter.