Sanchia Temkin
29 June 2009
Johannesburg — THE JSE is in talks with the Treasury regarding removing restrictions related to inward listings.
This comes in the light of British American Tobacco 's (BAT) reclassification as an "inward foreign listing" by the Reserve Bank last year.
The unbundling of 90% of Remgro 's holding in BAT to Remgro shareholders was the biggest deal last year . The company was listed after a restructuring of the tobacco interests of Swiss-based Richemont and local group Remgro.
JSE CEO Russell Loubser yesterday said inward-listed companies were subject to more restrictions than other companies. For instance, because BAT was an inward listing, it would not qualify for index-tracking investment funds. This could see it losing support from institutional shareholders. Further, pension funds could own only up to 20% of assets in such companies.
An inward listing is essentially a secondary listing of a foreign company in SA. The regulations on such companies were to protect the rand and prevent capital flight.
Loubser said if such restrictions were removed it would not abolish exchange control regulations.
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