Year of ‘Scandals’ Spurs South African Bourse to Plan New Rules
- Stricter framework for listings, share dealings by directors
- Diversity on boards would be subject to annual scrutiny
Johannesburg Stock Exchange.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Johannesburg’s stock exchange said it’s proposing tighter listing rules after South African financial markets were “shaken by a range of corporate scandals, rumors and innuendo” over the past year.
The bourse published a consultation paper Wednesday, saying recent events showed a need for it to review its responsibilities and strengthen aspects of regulation. Recommendations range from boosting racial and gender diversity on boards, to doubling the notice period before new stocks start trading. It proposes greater disclosure when directors use shares as collateral and supports plans for information on short-selling transactions to be made public.