SOUTH AFRICA: JSE Proposes Amendments to the Listing Requirements

Thursday April 18 2024

On 18^th April 2024, the Johannesburg Stock Exchange (JSE) announced amendments to its listings requirements to introduce the Market Segmentation Project aimed at the smaller issuers on the Main Board of the exchange.

Some of the reforms proposed for the General Segment, include:

• Introducing more flexibility through a general authority to issue shares for cash without shareholders approval, which may serve as a catalyst for capital raisings, subject to a prescribed limit and other safeguards like pricing parameters;
• Removing fairness opinions for related party transactions/corporate actions with more emphasis being placed on shareholders approval, disclosure and the corporate governance processes applied;
• Removing of the preparation of pro forma financial information with more emphasis being placed on a detailed narrative explaining the impact on the transaction/corporate action on the financial statements;
• Introducing larger percentage ratios for category one transactions;
• Introducing larger percentage ratios for small related party transactions with more emphasis being placed on disclosure and the corporate governance processes applied;
• Introducing more flexibility to undertake repurchases of securities; and
• Introducing more flexibility on financial reporting by removing the preparation of either (i) condensed financial statements or (ii) annual financial statements/summary financial statements within three months. Listed companies will only be required to prepare an annual report within four months.

Click on the above link for further information