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Singapore bank association enhances due diligence guidelines for listings on SGX

Xinhua, May 13, 2016 Adjust font size:

The Association of Banks in Singapore (ABS) announced on Friday that it has raised the standard of its guidelines for due diligence activities its member banks carry out on all companies wanting to list on Singapore Exchange (SGX).

Listings Due Diligence Guidelines had the inputs from SGX, auditors, lawyers, local and international banks, and corporate finance firms, and they generally apply to the due diligence process required of Issue Managers of Mainboard listings and Full Sponsors of Catalist listings.

The enhanced guidelines reflect the knowledge gained by industry practitioners from their experience in dealing with companies, said ABS.

Some of the major enhancements to the guidelines include matters which SGX deems important for companies to have to resolve at an early stage of the listing application process. These matters include the enhanced quality of the board and key management, the type of corporate structure, the business model, the financial position and liquidity of the company.

"This enhancement in the ABS: Listings Due Diligence Guidelines is crucial because Issue Managers and Full Sponsors are ultimately responsible for the due diligence on companies and the quality of the companies they sponsor for listing. I am heartened that Issue Managers and Full Sponsors are stepping up and contributing to a better listings admission process. These efforts will in the long run also improve the overall equities market," said Mr Tan Boon Gin, Chief Regulatory Officer, SGX.

"The newly-enhanced ABS: Listings Due Diligence Guidelines formalise best practices already adopted by many of our members. They are extremely comprehensive, reflecting the thoroughness and importance of due diligence for IPOs and RTOs or reverse takeovers. The improvements made to the Guidelines will help Singapore draw more quality listings and grow investors' trust and participation in our market," added Mrs Ong Ang Ai Boon, Director of ABS.

ABS, established in 1973, now has a membership of 154 local and foreign banks. The association works closely with relevant government authorities towards the development of a sound financial system in Singapore. Endit