- Who is affected
- Directors and management of SGX-listed issuers, and their sponsors and advisers.
Summary
Regulatory Updates: SGX had on, 26 November 2018, published a Regulator’s Column setting out what companies should observe when conducting Share Buy-backs. It also sets out the concerns on share buy-back and how they should be conducted to comply with laws, regulations and rules that govern the market place. Key takeaways of SGX Regulatory Column will be discussed in this regulatory update. Please click here for a copy of the SGX Regulatory Column. What is a Share Buy-back? Share Buy-back is the repurchasing of shares by the company that issued them. Companies buy back their own shares for various capital management reasons, such as to revise the company’s capital structure to improve the return on equity or to enhance earnings per share.
In a nutshell: SGX Regulatory Column ➢ Like any other trading activity, share buy-backs should not be used to carry out any form of market misconduct such as insider trading or creating a false market ➢
This update is a summary of publicly available regulatory guidance prepared by SAC Capital Private Limited for general information. It is not legal advice. Issuers should refer to the SGX Listing Rules and consult their sponsor or legal adviser.