As part of SGX’s ongoing efforts to improve the overall quality of listed companies in Singapore, SGX had introduced a SGX Watch-list a few years ago to highlight persistent loss making companies.
The admission criteria to get into this Watch-list includes:
There will be a quarterly review to identify companies that meets these criteria.
Once admitted into this Watch-list, the company will need to submit an application (upon meeting the criteria of Rule 1314) within 24 months after it was placed onto the Watch-list, failing which it might be forced to delist or trading of its shares might be suspended.
Such a forced delisting is often an unhappy affair for minority shareholders as the company will usually not have the money to make a decent delisting offer.
Under Rule 1314, the company will need to show :
The Watch-list rules do not apply to investment funds, real-estate investment trusts, business trusts, global depository receipts (GDRs) and secondary-listed companies listed on the Mainboard.