The amendments previously proposed by the Johannesburg Stock Exchange (JSE) pursuant to the Rejuvenation Project on Section 19 (Specialist Securities) will come into effect on 11 November 2024.

BEE segment

A new Section 23 has been proposed. Paragraphs 4.32 to 4.32B of Section 4 on Conditions of Listing are to be deleted for the relevant sections to move across into the new Section 23. This will also result in consequential amendments to Section 18 (Dual Listings and Depository Receipts), largely in the form of deletions on the BEE Segment, which are also to be repurposed in Section 23.

Specialist securities

Section 19 of the JSE Listings Requirements will be deleted in its entirety. Specialist Securities will be covered under the new Debt and Specialist Securities Listings Requirements going forward. Depository receipts will be moved to Section 18 (Dual Listings and Depository Receipts).

Depository receipts

Section 18 (Dual Listings and Depository Receipts) will cover criteria for dual listings. An issuer of unsponsored depositary receipts must:

• be regulated under the Banks Act of 1990 or the equivalent foreign legislation in the case of foreign issuers;
• have the relevant expertise to issue securities or access to such expertise;
• be generally acceptable to the JSE, having regard primarily, but not only, to the interests of investors and the objects of the Financial Markets Act of 2012; and
• must be in conformity with the applicable laws of its jurisdiction of incorporation, having obtained all necessary statutory, or other, consents required to apply for and maintain a listing of securities.
• This was already proposed in the last round for discussion.

Responsibilities of the depository for unsponsored DRs should be announced on SENS, and all financial information on the underlying entity must be made available within 10 business days of publication of the financial information available on the website. The SENS announcement must include the link to the website where such information can be obtained.

Written by Mili Soni, Knowledge Management, Bowmans