The Johannesburg Stock Exchange has put forward a series of reforms aimed at slashing bureaucratic obstacles that have long deterred companies from listing.
Under the proposals, the JSE’s main board would be split into two segments: a Prime tier for established businesses and a General section tailored for smaller entities. The General Segment would allow increased flexibility on share issuances without seeking shareholder approval, subject to conditions.
The reforms would also scrap the need for fairness opinions on certain transactions, placing greater weight on investor votes and corporate governance. Annual reporting rules would be eased, with condensed financials no longer required within a three-month window.
Andre Visser, the JSE’s head of issuer regulation, said the overhaul was “critical” to luring new investment and retaining confidence at home and abroad. The aim is to create a more dynamic capital market with higher listing and trading volumes.
The JSE has battled a dwindling number of public offerings in recent years as companies have shunned stock market fundraisings. The FTSE/JSE Africa All Share Index has seen its constituency shrink markedly over the past decade.
Public consultation on the proposals runs until May 20, pending approval from the Financial Sector Conduct Authority regulator.
The measures underline the JSE’s drive to modernise and meet the changing needs of SA’s capital markets as it strives to remain an attractive listing venue and support economic growth.
