After wide media reporting, the ASX has confirmed its plan to
raise the bar for ASX listings.
The Consultation Paper released by the ASX late last week
repeatedly cites "maintaining the quality and integrity of the
ASX market" as the rationale for the stringent changes. ASX
seems to have taken the view that a company's size is
determinative of quality and that market integrity can only be
achieved through arbitrarily determining whether a company is
"big" enough to list. Some might question this approach
– perhaps validly so.
The ASX announcement has also left the corporate world wondering
how the changes will impact the so-called "innovation
nation".
There are a number of proposed changes to the listing rules and
guidance notes which are expected to come into effect on 1
September 2016. Additionally, key policy and process changes (which
are not specifically related to the listing rules) will be
implemented immediately.
