Quicker review of applications

THE securities regulators and stock exchanges of Malaysia, Singapore and Thailand have signed an agreement which will see the time to review applications for secondary listings in the countries more than halved.

The Expedited Review Framework for Secondary Listings is an initiative under the Association of South East Asian Nations (ASEAN) Capital Markets Forum (ACMF) Implementation Plan endorsed by the ASEAN Finance Ministers in 2009.

Its objective is to speed up the processing of secondary listing applications together with the relevant disclosure documents.

This framework is available to corporations which are incorporated and whose shares are primarily listed on the main market of an exchange in jurisdictions which are signatories to the Memorandum of Understanding (MoU).

Where corporations satisfy the requirements set out in the framework, signatories to the MoU will review these applications within a shortened time period of seven weeks, compared to up to 16 weeks currently.

Malaysia, Singapore and Thailand are the first three jurisdictions to sign the memorandum .

Other securities regulators and stock exchanges of ASEAN jurisdictions may join the Framework by signing the MoU as and when they are able to satisfy the requirements of the framework.

Securities Commission chairman Tan Sri Zarinah Anwar said the framework will foster greater capital market integration in the region and promote ASEAN as a global fundraising destination.

The Expedited Review Framework for Secondary Listings is expected to encourage more listed companies to seek cross-listings in the region as a means of broadening their investor base.