JSE unveils relief measures for business in distress

The Johannesburg Stock Exchange (JSE) has announced relief measures to assist businesses affected by the financial distress caused by the COVID-19 pandemic. With several JSE listed companies such as Comair and Phumelela going into business rescue, the JSE has introduced a series of initiatives to support its stakeholders in these challenging times. Valdene Reddy, Director of Capital Markets at the JSE, discussed the relief measures in an interview with CNBC Africa. She highlighted the need for collaborative efforts to navigate the uncertainty and challenges posed by the current crisis. Reddy emphasized the importance of working closely with market participants to address their concerns and adapt to the evolving situation. These relief measures aim to offer short-term support while also laying the groundwork for a potential new normal in the long term. One key aspect of the relief measures is focused on providing support to small and mid-cap companies. These businesses, with smaller market capitalizations and concentrated shareholder bases, may face increased pressure during these unprecedented times. To assist them, the JSE has reduced fees for additional listings, trading, and clearing and settlement in these segments. By easing financial burdens, the JSE aims to help these companies weather the current storm and potentially avoid delisting or other long-term viability concerns. In addition to the short-term relief measures, the JSE is also looking ahead to the future and recognizing the need for ongoing collaboration and flexibility. Reddy highlighted the importance of working together with market participants to understand their evolving needs and challenges. As the pandemic continues to impact the economy, the JSE remains committed to adapting its strategies and support mechanisms to ensure the resilience of the financial market ecosystem. The concept of the 'new normal' has been widely discussed in the context of the pandemic. Reddy acknowledged that the landscape is constantly evolving, and there is no clear definition of what the new normal will look like. However, she stressed the importance of being prepared to react and collaborate to address the changing dynamics of the market. As the JSE navigates through the challenges brought about by the crisis, the focus remains on working together with stakeholders to find meaningful and sustainable solutions that will benefit the marketplace as a whole. In conclusion, the JSE's relief measures reflect a proactive approach to supporting businesses in distress during these uncertain times. By providing short-term assistance to small and mid-cap companies and fostering ongoing collaboration with market participants, the JSE is positioning itself to adapt to the 'new normal' and support the financial ecosystem in the long term.