Locally listed companies and their controlling shareholders will need to disclose more of their loan exposure under the new rule introduced by the stock exchange next month.
The exchange yesterday announced a new practice note will be introduced from December 1 to close the loophole revealed in the collapsed of the Peregrine Investment Holdings earlier this year.
Peregrine had offered US$265 million in loans to Indonesian Steady Safe.
The rupiah's collapse and the ensuing defaults on loan repayments led to Peregrine's failure.
Peregrine never disclosed such loans before it collapsed.
The Government's financial market review report released in April has pointed out this loophole, and proposed tightening up disclosure rules for listed companies' loan exposure.
Under the new rule, all listed companies need to disclose in their interim or annual reports their loans exposure when the loans or guarantee made to any other companies are more than 25 per cent of its own net asset value.
