Eligibility, roles and responsibilities of a Sponsor
4.5
Pursuant to Rule 4.09(c) of the ACE LR, a Sponsor must advise the Sponsored Corporation if the trading of the Sponsored Corporation’s listed securities will or should be halted or suspended. What are the key roles of a Sponsor under this Rule 4.09(c)?
A Sponsor must among others, assess and advise the Sponsored Corporation whether there is a need to request for suspension pursuant to Guidance Note 12.
When a Sponsored Corporation makes an announcement during trading hours, a Sponsor is expected to advise the Sponsored Corporation whether the announcement will trigger a trading halt and the period of such trading halt, if applicable, under Guidance Note 14.
The above is not exhaustive. A Sponsor is expected to advise a listed corporation to request for suspension where a situation warrants it. For example, X Bhd’s board of directors deliberated on a material acquisition at a meeting ended at 2 p.m. on Monday. The board decided to make an announcement after 5 p.m. while maintaining the confidentiality of the acquisition. However, there is unusual trading in the securities of X Bhd when trading commences at 2.30 p.m. X Bhd is uncertain whether there is a leak of information. In such instances, the Sponsor must advise X Bhd to request a suspension of trading in its securities pending the release of the announcement on the acquisition.