Photo credit: PNGX
PNGX, Papua New Guinea’s national stock exchange, has released proposed new Listing Rules for consultation.
A key step towards the development of a more effective secondary market in equity securities is the modernisation of the PNGX Listing Rules.
PNGX’s Listing Rules govern the quotation of securities, their admission to the official list and hence the listing of the issuer, the suspension of securities from quotation and the removal of securities from quotation. They also govern disclosure and some aspects of a listed entity’s conduct.
The existing PNGX Listing Rules were introduced in April 1999 and were closely based upon the Listing Rules of the Australian Stock Exchange. They were last amended in November 2012. They are based upon the Securities Act 1997, which was replaced in November 2018 by the Capital Market Act 2015.
PNGX is proposing to introduce new Listing Rules to replace the existing Listing Rules. The objectives of the rewrite are to:
- Update the Listing Rules to reflect the Capital Market Act 2015; and
- Introduce Listing Rules which are “fit for purpose” for the nature and scale of the PNG capital market; whilst
- Aligning the proposed rules with contemporary ASX Listing Rules, but not replicating the ASX Listing Rules, in recognition of the significant portion of the PNGX market which is dual listed on ASX, thereby minimizing compliance costs which would arise from significant variance between the rules.
- The current equities market will be known as the BikMaket or Main Market;
- The new corporate debt market will be known as the DinauMaket or Debt Market;
- A new market for medium sized issuers will be developed and known as the PasisMaket or Passage Market; and
- A new platform for small and medium sized issuers to access funding and social fund raising will be developed and known as the GroMaket or Growth Market
