ASX to include foreign exempt firms in stock indices

SYDNEY, Aug 11 - Foreign exempt companies listed on the Australia Securities Exchange will be eligible for index inclusion from Sept. 1, the ASX and indices provider Standard & Poor's said in a joint statement on Monday.

Companies that are foreign exempt are not required to comply with ASX rules provided they comply with the listing rules of their home exchanges.

Eligible companies will need to have a primary listing on a major exchange within a developed market, the statement said.

"This change removes a key impediment to large international listings on the ASX," said Richard Murphy, ASX General Manager Equity Markets.

Murphy said there was a strong interest from Australian fund managers, investment banks and brokers in expanding the international side of ASX-listed equities to keep pace with the growth in funds held by Australian pension plans.

Companies that may be eligible for future index inclusions include Alcoa Inc <AAI.AX>, Anglogold Ashanti Ltd <AGG.AX>, Constellation Brands Inc <CBR.AX>, Coca-Cola Hellenic Bottling Company S.A. <CHB.AX> and Newmont Mining Corp <NEM.AX>.

These companies have primary listings on major exchanges whose disclosure requirements are broadly comparable with those of the ASX.

In May, 2007, the ASX and Standard & Poor's decided to allow foreign-domiciled companies with Australian listings to be part of the Australian market's indices.

That decision paved the way for U.S. domiciled media group News Corp <NWS.AX> to be reinstated in the top 50 companies index. News Corp had been removed from the ASX indices after changing its domicile to the U.S. from Australia in 2004.