Jo'burg Stock Exchange Considers Tightening Listing Rules

In response to a range of corporate scandals, speculation and innuendo that have characterised South African financial markets over the past year, the Johannesburg Stock Exchange (JSE) is embarking on a public consultation process.

For the JSE, the events of the past year have highlighted the need for it to review its responsibilities and to strengthen regulation around primary and secondary listings.

As a frontline regulator, the JSE continues to advocate for the enhancement of corporate governance and the quality of financial reporting disclosures by listed companies for the benefit of shareholders, investors and other market stakeholders.

The consultation paper is not only aimed at addressing the concerns of the South African investment community, but to challenge all role-players within the broader financial market eco-system to consider their roles as well.

In particular, these are roles which fall outside of the JSE's regulatory ambit including the disclosure of short sales; disclosure of progress on market abuse investigations and the responsibilities of other guardians of governance such as Boards of directors; audit firms; analysts; large asset managers & shareholders.

"While the JSE is reviewing areas within its mandate, we do not suggest that we have solutions for the ecosystem as a whole. Depending on the nature of the comments received in response to this paper, it may be appropriate to convene a colloquium to discuss the improvement of governance," says CEO Nicky Newton-King.

Through this process the JSE envisages improvements to:

• Regulation to ensure that it remains appropriately pitched;

• Disclosure standards to provide even further information to stakeholders; and .

• Governance structures to provide more robust governance oversight.