JSE LISTING REQUIREMENTS: MARKET SEGMENTATION PROPOSALS OUT FOR COMMENT

JSE LISTING REQUIREMENTS: MARKET SEGMENTATION PROPOSALS OUT FOR COMMENT

• 15 July 2024
• Financial Sector
• SA Legal Academy

The Financial Sector Conduct Authority has gazetted a notice calling for input by 26 July 2024 on proposed amendments to the Johannesburg Stock Exchange (JSE) listing requirements, focusing on market segmentation. Unfortunately, the documents concerned were only published two days after the notice itself.

According to an explanatory memorandum on the changes envisaged, among other things it is proposed that:

• there would be two market segments (‘main board prime’ and ‘main board central’)
• market segmentation would be available only to main board primary issuers
• the default position for all main board listed issuers would be classification in the main board prime segment
• issuers would be required to apply to the JSE for classification in the main board general segment, subject to the proposed segmentation threshold
• the FTSE/JSE all share index would serve as the segmentation threshold, and that
• an issuer in the main board general segment would be reclassified in the main board prime segment only after being a constituent of the FTSE/JSE all share index for a period of twelve consecutive months.

The memorandum also proposes a raft of reforms for the main board general segment.

• draft amendments
• explanatory memorandum
• Government Gazette notice

Published by SA Legal Academy Policy Watch

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