The Johannesburg Stock Exchange (JSE) issued a consultation document in May 2022 as part of its ongoing efforts to secure the exchange. fair, efficient, transparent and competitive securities trading – ask stakeholders to comment on a server of proposals.
The exchange subsequently issued a written response in August 2022 outlining comments received from market participants, indicating favorable support from the majority of commentators, JSE said.
After the consultation, the team announced that they will now prioritize a number of recommendations.
He said the changes would be made in phases. Accordingly, JSE is prioritizing the implementation of the following changes to the listing and debt registration requirements.
Listing Request
Dual Class Shares – Following developments in other leading international markets, the JSE is proposing an amendment to introduce dual class shares to candidates wishing to be listed on the board. main board of directors. The proposed amendments come with appropriate safeguards to provide the necessary protection for investors and will allow the JSE to remain competitive and attract new listings.
Free float:
new listings – The UK and EU have reviewed the free float level required on listings, which has been identified as a hindrance to listing. In line with these developments, the JSE is proposing changes to reduce the free float threshold from 20% to 10%.
Free-Floating Valuations – Currently, holdings of securities that are not considered freely transferable are holdings of 10% or more in securities by an issuer, regardless of the affiliation of the stockholders. with the company. Proposed amendments would remove the 10% free transfer exclusion and introduce a minimum number of shareholders and a more appropriate exclusion for controlling shareholders to accommodate some of the most peer-to-peer exchanges. determined. The pandemic has increased volatility, making traditional quotes riskier. This has led to an explosion of SPACs, particularly in the US, although interest may have waned in recent times. JSE’s current SPAC offering is accessible and flexible. However, the JSE is proposing changes to accommodate major international markets to ensure the attractiveness and competitiveness of SPACs to issuers and investors.
Financial Information Disclosure – Following “red tape reduction” initiatives, JSE proposes to remove the requirement to present abbreviated statements when the issuer has published audited annual financial statements on the website of the issuer. The JSE also proposes to simplify financial reporting requirements and remove provisions that have no legal value. These changes will save businesses time and money.
Debt List Request
The 2022 Annual Improvement Project is primarily intended to provide changes to the Debt Claim, where the JSE has determined that:
Specific provisions in the Claim on Debt requires more clarity and context; and
There is an ambiguity in interpretation, which needs to be corrected.
“Our ongoing goal is to create an environment conducive to listing on the JSE as we take into account international best practices as we develop our listing requirements”, Andre Visser, CEO of JSE Issuers said. “We believe the changes proposed above will go a long way towards creating an internationally competitive and favorable environment for raising capital on the JSE with appropriate safeguards to ensure protect investors and attract new listings,” added Visser.
JSE invites all interested parties to comment on the consultation document no later than 30 November 2022.
