On 17 October 2012, ASX released a consultation paper, which reviews and proposed amendments to the Guidance Note for the continuous disclosure obligation under Listing Rules 3.1 – 3.1B.

Under Listing Rule 3.1, once a listed company is or becomes aware of any information concerning it that a reasonable person would expect to have a material effect on theprice or value of the company’s securities, the company must immediately tell ASX that information.

The purpose of compliance with Listing Rule 3.1 is to uphold the integrity and efficiency of the ASX market, where breaches of Listing Rule 3.1 may also be a breach of section 674(2) of the Corporations Act, which is both a criminal offence and a civil penalty provision.

The proposed Guidance Note 8 is very helpful in that it provides detailed and practical examples of the continuous disclosure obligations.

After the end of the formal submission period on 30 November, ASX is expected to adopt the revised guidance in the first quarter of 2013.

The proposed new version of Guidance Note 8: Continuous Disclosure and the consultation paper can be found here.

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