Monday, July 4, 2022

BSE new listing requirements made public

The Botswana Stock Exchange (BSE) has issued a draft for public interaction and comments on the new listing requirements this week.

BSE Chief Executive Officer (CEO) Hiran Mendis recently revealed that the BSE is in the process of reviewing and amending listing rules for new requirements which will be structured in a simpler way, thus making them easier to read and understand.

Information contained in the BSE listing requirement draft indicate that general principles of the listing requirements include that the  applicants shall have a minimum standard of quality, operations, management experience and expertise.

Also indicated in the draft is that investors and the public will be kept fully informed by the listed issuers of all facts or information that might affect their interests and in particular, full, accurate and timely disclosure will be made of any information which may reasonably be expected to have a material effect on the price, value or market activity in the securities of listed issuers.
The listing requirements draft also highlights that all holders of listed securities shall be treated fairly and equitably adding that directors, officers and advisers of listed issuers will maintain the highest standards of integrity, accountability, corporate governance and responsibility.

“Directors of an issuer shall act in the interests of shareholders as a whole, particularly where a director or substantial shareholder has a material interest in a transaction entered into by the issuer,” reads the draft.

The further pointed out that the securities should be brought to the market in a way that is appropriate and which will facilitate an open, liquid and efficient market for trading of securities.

“The listings requirements set out in the document apply to companies seeking a listing for the first time, presently listed companies, all other classes of equity securities that applicants may wish to list and those presently listed and, where applicable, to directors of applicant issuer, sponsoring brokers and nominated advisors,” reads the draft.┬á

According to the BSE draft, the listing requirements contain principles and procedures governing new applications, corporate actions and continuing obligations applicable to issuers.

It added that they are furthermore aimed at ensuring that the business of the BSE is carried on with due regard to the public interest. It further pointed out that the Exchange may at any time vary a decision in any way, or revoke it if circumstances so warrant.

“It may do so upon the application of the issuer or of its own accord and at its absolute discretion. The variation or revocation will take effect from the date specified by the Exchange”.

BSE stated that the Exchange may impose additional requirements or make any listing subject to special conditions whenever it considers it appropriate in keeping with the general principles.

“A listed issuer, a management company, a trustee, its directors, officers, advisers or any other person to whom these requirements are directed must comply with these Requirements for so long as the listed issuer or its securities remain listed on the official list. This applies even during periods when the listed issuer’s securities are suspended from trading,” reads the BSE draft.

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