Investors will be able to access new opportunities across Southeast Asia faster under a new initiative by the Singapore Exchange (SGX) and the Monetary Authority of Singapore (MAS).
The Expedited Review Framework is part of the Association of Southeast Asian Nations (ASEAN) Capital Markets Forum’s (ACMF) implementation plan, with the aim of speeding up the processing of secondary listing applications in partnering jurisdictions.
Where corporations satisfy the requirements of the framework, jurisdictions will review these applications within a shortened time period of 35 business days compared to the normal review time of up to 16 weeks.
Malaysia, Singapore and Thailand are the first three jurisdictions to sign up to the initiative but other regulators and exchanges within ASEAN are thought to be looking to join the framework.
“The signing of the memorandum of understanding indicates the commitment of ASEAN jurisdictions to work towards integrating our capital market,” said Lee Chuan Teck, assistant managing director (Capital Markets Group), MAS. “We hope that the Expedited Review Framework will encourage more listed companies to seek cross-listings in the region to broaden their investor base. With more cross-listings, investors in the region will have easier access to a broader choice of investments.”
ASEAN exchanges will be linked together by a new trading link as early as June 2012. The first stage of the project will see the Singapore Exchange and Bursa Malaysia connected in June. The Stock Exchange of Thailand will be added in August 2012, after its new trading engine goes live.
“SGX is pleased to join MAS, regional regulators and our exchange partners in signing the MOU. The Expedited Review Framework for Secondary Listings will shorten the time-to-market for secondary listings of companies,” said Gan Seow Ann, president, SGX. “We expect this will allow listed companies to leverage on ASEAN’s growth potential and that our customers will have access to a wider choice of investment opportunities.”
Details for the addition of the other ASEAN exchanges, including Vietnam’s Hanoi and Ho Chi Minh stock exchanges, the Indonesia Stock Exchange and the Philippines Stock Exchange, will be announced at a future date.
ASEAN aims to bring more investment opportunities to its members and increase liquidity in Southeast Asian financial instruments through cross-border collaboration and regional initiatives.
The seven ASEAN exchanges, located in six countries, have a combined market capitalisation of US$2 trillion and more than 3,600 companies listed on their exchanges.