Government's policy conclusions last March on how to improve regulation of listing in Hong Kong. The Government's proposals for public consultation would make certain amendments to the Securities and Futures Ordinance (SFO). The SFC's proposals for public consultation relate to amendments to the Securities and Futures (Stock Market Listing) Rules (SMLR) as subsidiary legislation under the SFO. The proposed new amendments to the SMLR would codify existing important requirements in the Listing Rules of The Stock Exchange of Hong Kong Limited covering three areas. They follow the Government's policy direction as stated in its March 2004 Consultation Conclusions:  disclosure of information and specific events; disclosure/publication of annual and periodic reports, including annual and  interim accounts; and disclosure of, and shareholders' approval for, notifiable transactions and  connected transactions. In codifying the more important requirements of the Listing into provisions in the SMLR, the SFC followed four general principles: the requirements relate only to disclosure. They do not include Listing Rules  dealing with issues of corporate governance; there are no substantive changes from the present Listing Rules, other than  in a few instances which are individually analysed and explained; there are no pre-vetting or approval requirements. Listed companies which  follow the SMLR would not have any extra compliance or administrative burden; and  the Stock Exchange will remain the frontline regulator and continue to receive applications and other disclosure materials, and administer the processing. Details of the SFC's proposals are set out in the document, “A Consultation Paper on Proposed Amendments to the Securities and Futures (Stock Market Listing) Rules”. The consultation paper is available on the SFC website at: http://eapp01.sfc.hk/apps/cf/smlr.nsf/eng/main
Government's policy conclusions last March on how to improve regulation of listing in Hong Kong. The Government's proposals for public consultation would make certain amendments to the Securities and Futures Ordinance (SFO). The SFC's proposals for public consultation relate to amendments to the Securities and Futures (Stock Market Listing) Rules (SMLR) as subsidiary legislation under the SFO. The proposed new amendments to the SMLR would codify existing important requirements in the Listing Rules of The Stock Exchange of Hong Kong Limited covering three areas. They follow the Government's policy direction as stated in its March 2004 Consultation Conclusions:  disclosure of information and specific events;  disclosure/publication of annual and periodic reports, including annual and interim accounts; and  disclosure of, and shareholders' approval for, notifiable transactions and connected transactions. In codifying the more important requirements of the Listing into provisions in the SMLR, the SFC followed four general principles:  the requirements relate only to disclosure. They do not include Listing Rules dealing with issues of corporate governance;  there are no substantive changes from the present Listing Rules, other than in a few instances which are individually analysed and explained;  there are no pre-vetting or approval requirements. Listed companies which follow the SMLR would not have any extra compliance or administrative burden; and  the Stock Exchange will remain the frontline regulator and continue to receive applications and other disclosure materials, and administer the processing. Details of the SFC's proposals are set out in the document, “A Consultation Paper on Proposed Amendments to the Securities and Futures (Stock Market Listing) Rules”. The consultation paper is available on the SFC website at: http://eapp01.sfc.hk/apps/cf/smlr.nsf/eng/main
CORPORATE-LAW-ELECTRONIC-BULLETIN-January-2005.docx