The Business Times’ front page story today was about the SGX’s move to hive off its regulatory function into a separate, independently supervised, subsidiary. A good move for corporate governance but it remains to be seen if this will result in increased listings and a more vibrant market.

Stefanie weighed in: “The establishment of a separate subsidiary for the SGX’s regulatory function is a positive development, especially as it will have separate and independent board oversight. This is a move commentators have long called for, because it’s important that any, even perceived, conflicts of interest be eliminated. This is big step towards more transparency in governance of our bourse.

That said, the SGX continues to face difficult challenges – low trading PE ratios and a slew of privatisations. It needs to assure the market that the new RegCo will not increase compliance costs and submission time, and ensure that it continues to take a holistic and commercial approach in regulation, so as to not over-regulate listed companies.”

Read more at The Business Times