ABS, SGX team up to enhance due diligence standards

Companies planning to list now have to meet higher standards.

The Association of Banks in Singapore (ABS) has worked with Singapore Exchange Regulation to update guidelines that will raise due diligence standards amongst companies planning to list on the Singapore Exchange.

Issue managers and full sponsors will now have to carry out these higher expectations from the enhanced guidelines during their initial public offer, reverse takeover, and listing process.

Amongst the key updates are increased focus on the assessment of the adequacy and effectiveness of the issuer’s internal controls, assessment of the sustainability and viability of the issuer’s business, targeted guidelines for due diligence on issuers operating in specialised, and restricted or niche industries.

“These guidelines represent an important supporting pillar of robustness to Singapore’s positioning as a leading listing venue for sectors including healthcare, commodities, oil and gas, REITs and business trusts – and regular updates are necessary to ensure that the guidelines continue to be relevant to the constantly changing economic climate,” ABS director Ong-Ang Ai Boon said.

The enhanced ABS Listings Due Diligence Guidelines will take effect today since its last revision in 2016.