The unlisted market is a trading platform for unlisted companies or SMEs to raise funds for growth financing, fast-tracking their transition to listing in a public market. The platform could also provide an exit avenue for existing founders and investors of these SMEs. Under this platform, fund raising by these SMEs would be conducted in a more efficient, organised, and transparent manner.
The platform would be further expanded, depending on market readiness, to include other alternative asset classes such as unlisted bonds, unlisted business trusts, contract for differences etc. The level of regulations applied to the platform will be proportional to the level of product sophistication and maturity of the capital market.
Given that the platform is for raising of risk capital and taking into account investor protection issues, this venue will only be opened to qualified investors as these investors have the ability and requisite skills to conduct the necessary due diligence in making an informed investment decision.
The players/participating members on this platform would be the stockbrokers, corporate finance advisors, legal firms, audit firms, valuers etc. Each entity will be playing their respective role depending on the nature of transaction or activities.
The SC has already carried out jurisdictional studies and conducted a series of engagement sessions with relevant stakeholders in 2012. The conceptual framework has been internally approved and currently, the SC is conducting further in-depth engagements with relevant stakeholders.