The Securities and Futures Commission (SFC) today (29th) issued guidelines to assist securities issuers in preparing to participate in the uncertificated securities market regime, which is expected to be implemented on November 16 this year.

To enhance issuers understanding of the uncertificated securities market regime and facilitate their preparatory work, the SFCs new guidelines focus on explaining their responsibilities under the regime and the next steps required.

The SFC reminds issuers that one of their key tasks is to review and amend their terms of issuance (such as their articles of association) to ensure compliance with the uncertificated securities market regime. To support the relevant process, the guidelines set out key matters that require attention and provide sample provisions for issuers reference. Issuers must complete the amendments by the deadline, being the first anniversary of the implementation of the uncertificated securities market regime (i.e. November 16, 2027) or the date of their first annual general meeting held after the regimes implementation, whichever is later. Issuers are therefore advised to commence the relevant procedures as soon as possible.

In addition, after the implementation of the uncertificated securities market regime, issuers will be required at all times to appoint an approved securities registrar. To date, six companies have applied to become approved securities registrars.

Meanwhile, The Stock Exchange of Hong Kong Limited also published its Guidelines on Uncertificated Securities Market today, highlighting issuers responsibilities under the Listing Rules in relation to the implementation of the uncertificated securities market regime. (da/)

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