SGX lists 109 firms that must still carry out quarterly reporting

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

The Singapore Exchange (SGX) issued a list of 109 firms that will still be required to report their financial results for every quarter.

The announcement comes as SGX Regulation (SGX RegCo) scraps the quarterly reporting rule, effective today, and moves to a new regulatory regime where most companies will report only their half-and full-year financial statements.

Under the previous regime, companies with a market capitalisation exceeding $75 million were required to file quarterly financial reports.

The requirement covered about 70 per cent - or almost 600 - of the 850 or so listed companies here.

SGX believes the move will enhance its regulatory regime by making it more focused on troubled companies.

Firms not required to report results four times a year see it as a significant cut in compliance costs.

Quarterly reporting will now be required only from listed entities associated with higher risks.

These will include companies that have a modified audit opinion on their latest financial statements or their auditors have highlighted a material uncertainty, SGX said in a statement.

The exchange may also assign companies to the quarterly reporting (QR) list if it has regulatory concerns about them.

Companies that were not required to report every quarter under the previous regime will get a one-year grace period to brace themselves for the new rules.

The QR list includes 61 mainboard and 48 Catalist companies. Among them, 85 were reporting every quarter, while 24 were not.

The QR list targets companies that are of greatest concern to regulators and investors, enabling more effective monitoring of how those concerns are being addressed, Ms June Sim, head of listing compliance at SGX RegCo, said in a media briefing.

SGX also announced a new set of guidance on the restricted periods in which a listed entity may not make specific corporate action announcements... The new guidance will help companies comply with the new reporting regime where financial results will be disclosed only after the second and fourth quarters.

She said the QR list will be updated as and when required or deemed fit by the exchange.

SGX also announced a new set of guidance on the restricted periods in which a listed entity may not make specific corporate action announcements.

The announcements include those related to dividend, bonus issue or rights issue, record date, capital return or passing of a dividend.

The new guidance will help companies comply with the new reporting regime where financial results will be disclosed only after the second and fourth quarters.

However, dividend announcements are allowed without being accompanied by financial results if the company has a committed policy to announce dividends on a quarterly basis.

Mr Michael Tang, SGX RegCo's head of listing policy and product admission, said about 30 companies announce dividends every quarter and most of them are real estate investment trusts.

Companies will still make immediate disclosures of material information that may cause dividends to deviate from expectations based on previous announcements, or if no dividend is paid, he added.

A version of this article appeared in the print edition of The Straits Times on February 07, 2020, with the headline 'SGX lists 109 firms that must still carry out quarterly reporting'. Print Edition | Subscribe