Rules require disclosure of trade-sensitive news

The Singapore Exchange Centre in Shenton Way.
The Singapore Exchange Centre in Shenton Way.ST PHOTO: KUA CHEE SIONG

The Singapore Exchange (SGX) has amended rules to ensure listed companies disclose both price-sensitive as well as trade-sensitive news.

The amendments to Practice Note 7.1 (Continuing Disclosure) of the Mainboard Rules and Practice Note 7A of the Catalist Rules (collectively, the "Practice Note") take effect today, Singapore Exchange Regulation (SGX RegCo) said.

While listed companies understand the requirement for reporting materially price-sensitive information, it is "less well known" that they also need to disclose trade-sensitive news via SGXNet, SGX RegCo chief executive Tan Boon Gin said yesterday.

"SGX RegCo would therefore like to remind listed companies that both tests of materiality are of equal importance," he said.

A negative response for the price-sensitivity test does not mean the listed company can consider its disclosure obligations discharged; the listed company should also consider the trade-sensitivity test, he added.

Under existing rules, companies are also required to immediately assess price-and trade-sensitive information of a significant litigation and any material developments in that process.

With regard to market rumours and speculation, if the information is reasonably specific and attributable to a reliable source, SGX will require immediate clarification from the listed company.

"Listed companies must have in place robust and effective internal controls for the assessment of material information requiring disclosure. If a listed company is unable to ascertain whether the information is material, or is in any doubt about whether to disclose, the recommended course of action is to announce the information immediately via SGXNet," Mr Tan said.

A version of this article appeared in the print edition of The Straits Times on February 07, 2020, with the headline 'Rules require disclosure of trade-sensitive news'. Subscribe