A 50% volume reduction in listings’ requirements at the Johannesburg Stock Exchange (JSE) has been approved by the Financial Sector Conduct Authority.
New issuers have been subject to the updated regulations since 13 January, while existing issuers will be impacted from 16 February.
As part of the JSE’s simplification project, launched in September 2023, the new listing requirements aim to encourage firms to list on the exchange – and stay there.
Changes include a 25% reduction (75% to 50%) in the shareholder approval threshold, a “crystalised” corporate governance regime, and a uniform disclosure regime in line with the Companies Act.
Andre Visser, director of issuer regulation at the JSE, commented, “This reform package is already strengthening our pipeline and lowering barriers to listing, while safeguarding investors through clear, fit for purpose regulation.”
Previous elements of the simplification project include the introduction of a market segmentation framework in 2024, designed to cut back compliance costs and encourage capital formation in 2024. This has allowed 31 main board companies to move to the general segment, the JSE states.
Last year, Valdene Reddy took over as CEO of the JSE.
