In a Sponsor-supervised market, SGX continues to regulate companies through its admission and continuing obligation rules. It also retains the power to discipline them when there is a rule breach. However, approved "Sponsors" undertake the direct supervision of the companies.
Sponsors are qualified professional companies experienced in corporate finance and compliance advisory work. They are authorized and regulated by SGX through strict admission and continuing obligation rules.
The Sponsor's main role at IPO is to assess the company's suitability to list and to prepare it for listing. After IPO, Sponsors are to advise and supervise listed companies on responsibilities in a public market. Sponsors are expected to whistleblow to SGX when there is an affirmed or suspected rules breach.
Admission & Continuing Obligations for Companies
There are no quantitative entry criteria for companies. They must be brought to market by an approved Sponsor of Catalist. After IPO, the rules for companies provide key investor safeguards relating to shareholder protection and corporate governance. These include the disclosure of material information and shareholder approvals for additional share issuance, acquisitions/disposals and interested persons transactions. To cater to the needs of growth companies, the annual limit on the issue of additional shares and the thresholds for shareholders' approval of acquisitions and disposals have been raised.
Whilst the Sponsor is at hand to advise a listed company on rule compliance and review their documents, the responsibilities and roles of the company management and directors remain unchanged.
Investors should be aware that SGX no longer undertakes the usual supervisory role over the admission and continuing listing of companies on Catalist. This role is undertaken by approved Sponsors.
For more details on the admission and continuing requirements for companies, please click here.
Admission & Continuing Obligations for Sponsors
In view of the critical role of Sponsors in Catalist, SGX will impose strict requirements on the entry and continuing qualification of Sponsors. In particular, their work record and reputation must be satisfactory. In addition, the professional team undertaking Catalist work must be registered as Registered Professionals.
After entry, Sponsors and Registered Professionals must continue to demonstrate quality work. Sponsors will be reviewed periodically by SGX.
If a Sponsor or Registered Professional is the subject of an affirmed or suspected rule breach, SGX will conduct appropriate investigations. The Sponsor or Registered Professional may be charged before the Disciplinary Committee. Penalties that may apply are reprimand, fines, restrictions or conditions on activities, suspension, revocation of authorization (Sponsors) or deregistration (Registered Professionals) and undertaking an educational program.
For more details on the admission and continuing requirements for Sponsors and Registered Professionals, please click here.
