The Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX) jointly signed a Memorandum of Understanding (MOU) on the Expedited Review Framework for Secondary Listings on 16th March 2012.
The Expedited Review Framework is an initiative under the ACMF Implementation Plan endorsed by the ASEAN Finance Ministers in 2009. The objective of the Framework 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 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 35 business days compared to the normal review time of up to 16 weeks.
Malaysia, Singapore and Thailand are the first three jurisdictions to sign the MOU. Other securities regulators and stock exchanges of ASEAN jurisdictions may join the Framework by signing the Memorandum of Understanding on Expedited Review Framework for Secondary Listings as and when they are able to satisfy the requirements of the Framework.
Marcus Chow, Partner, ATMD Bird & Bird said: “The MOU will facilitate the reviews of cross listings on the ASEAN exchanges. It may potentially lead to higher valuations in certain industry clusters.”
Tay Beng Chai, Partner, ATMD Bird & Bird said: “We are seeing greater interests in secondary listings from Malaysian companies. This initiative will spur more companies looking at Singapore for such listing and we are well placed to provide seamless service across both countries.”
More information on the ACMF Implementation Plan and the ASEAN Economic Community Blueprint 2015 can be found at the website for the Asean Capital Markets Forum and in the Asean Economic Community Blueprint.