MARKETS & INVESTING | Staff Reporter, Singapore

SGX to amend rules on quarterly reporting

If QR is retained, only firms with at least $150m market cap will be required to do it.

The Singapore Exchange (SGX) opened a public consultation whether to retain listed companies' quarterly reporting (QR) or not.

SGX said in an announcement, "Concern about compliance costs has been repeatedly raised among market professionals and listed companies whilst investors prefer adjustments to QR to be tempered."

If QR is retained, SGX proposes that companies that can do QR must be sorted according to market cap.

It suggested that companies with a market cap of $150m, instead of those with $75m or more, should do QR. It also recommended that companies with a $150m market cap and a shareholder with at least 15% of companies' shares must do QR.

"Some 37% of companies reported quarterly when QR first started in 2003 while 70% of companies do so today," SGX said.

Other proposals said that, if QR is retained, minority shareholders of a reporting company can vote to opt out of QR every three years. The content of any reports for the first and third quarter will also be simplified to the balance sheet, income statement, cash-flow statement, review of performance commentary of significant trends, and board confirmation.

The public can submit feedback on the proposed QR review until 9 February 2018. The full details of the public consultation including the questions are on the SGX website

If adopted, SGX expects to implement a new QR requirement in the second half of 2018.

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