JOHANNESBURG – The JSE yesterday moved to secure the integrity of the country’s financial markets after a torrid few months which have seen corporate scandals become the norm.
The local bourse released a discussion paper that is suggesting a raft of changes to strengthen regulations around primary and secondary listings.
“While the JSE is reviewing areas within its mandate, we do not suggest that we have solutions for the ecosystem as a whole," said JSE chief executive Nicky Newton-King.
“Depending on the nature of the comments received in response to this paper, it may be appropriate to convene a colloquium to discuss the improvement of governance.”
The near-collapse of Steinhoff following an “accounting irregularity” and the short selling activities of Viceroy Research have put the spotlight on loopholes in the country’s markets. The JSE wants issuers to have the minimum subscribed capital amount in place prior to any capital raising through a listing, while it aims to raise the current subscribed capital amount required to list. The JSE in 2007 pegged the subscribed capital at R500 million.