EDITORIAL: Inside the JSE’s plan to restore trust
The JSE says recent events have highlighted the need for it to review its responsibilities and strengthen its rules on listings
The JSE has heard the stinging criticism directed at it in recent months. This week, the continent’s largest stock exchange released a consultation paper aimed at "improving its regulatory approach to new and existing listings". It’s a welcome step, given the collapse of Steinhoff in December, allegations that property group Resilient has been manipulating its share price, and criticism of the JSE for listing flops like the Gupta-owned Oakbay Resources. In the paper, the JSE says recent events have highlighted the need for it to review its responsibilities and strengthen its rules on listings. JSE CEO Nicky Newton-King says this is the most broad-ranging review of the rules in years. "We’ve taken this moment, this noise, very seriously," she says. "It has affected people’s confidence in the market. The whole point was to take a hard look and ask: would this contribute towards better checks and balances?"
It would seem that, should these proposals be implemented, it would be a ...