The Singapore Exchange (SGX) announced amendments to its listing rules Wednesday, targeting foreign issuers in particular.
According to a statement by the SGX, foreign issuers are required to have at least two independent directors who are Singapore residents on the board of directors.
They are also required to have at least two independent directors who are Singapore residents on a continuing basis, and not just at listing. Existing issuers have to comply with this rule before January 1, 2008, the SGX said.
To enhance corporate governance, the board of directors of a listed company are required to give a "negative assurance" confirmation for interim results that, to the best of their knowledge, nothing has come to their attention, that may render the financial results false or misleading.
In addition, the SGX has made several changes to the rules to extend the role of intermediaries, increase directors' awareness of listing obligations and improve transparency and disclosure.
The regulator hopes that its listing rules are effective and relevant to market needs and that abiding by high regulatory standards can help build a robust and enduring marketplace here, as well as strengthening investor confidence.
The amendments will come into effect from September 1, 2006.