Poland's Cabinet Approves Bill to Ease Stock Market Entry for Smaller Companies

In brief

• Poland's cabinet approved a draft amendment easing rules for companies listing on the stock exchange.
• The prospectus threshold would rise to EUR 12 million, lightening duties for smaller offerings.
• New rules on sponsored investment research and supervision of ESG rating providers are included.

Lower threshold for prospectuses

The Council of Ministers approved on Tuesday a draft law amending several acts to improve the functioning of the capital market. The bill was prepared by the Ministry of Finance and Economy and implements EU rules meant to make public capital markets more attractive and easier for small and medium-sized enterprises to raise funds (Mniej obowiązków przy wchodzeniu na giełdę. Rząd przyjął projekt – Money.pl) (Zmiany dla spółek wchodzących na giełdę. Rząd przyjął projekt – GazetaPrawna.pl) (Rząd przyjął przepisy usprawniające funkcjonowanie rynku kapitałowego – Ministerstwo Finansów).

The main change concerns prospectuses. The threshold above which a public offering requires a full prospectus would rise to EUR 12 million, so issuers offering securities worth less than that would face lighter disclosure duties (Prospekt emisyjny dopiero od 12 mln euro. Idzie duża ulga dla debiutantów na GPW – Bankier.pl). Reporting and preparation obligations for issuers would also shrink (Giełda ma być bardziej przyjazna dla mniejszych spółek – Prawo.pl).

Simpler rules for small listings

The draft also adjusts the rules for markets aimed at smaller firms, bringing them in line with the new EU framework and with alternative trading systems that have developed in recent years. Officials say the aim is to cut administrative burdens and costs that companies face when they seek capital, particularly smaller ones.

New requirements for analysts and ESG raters

The package is not only deregulation. Investment research will face new requirements, including rules for analyses sponsored by the issuer. Such materials must be clearly labelled to preserve transparency. Providers of ESG ratings would fall under the supervision of the Polish Financial Supervision Authority (KNF), which the government says should make these assessments more reliable and the market more transparent.

The bill now goes to parliament. Its effect on listings will depend on how the new thresholds and disclosure rules are applied once it takes effect.