SINGAPORE, Dec. 10 (Xinhua) -- The Singapore Exchange (SGX) is giving its rulebook one of its biggest shake-ups, in the wake of a string of corporate scandals threatening investor confidence in the local market, local media reported on Thursday.

    The SGX unveiled 36 proposed changes for listed firms aimed at strengthening corporate governance and supervision, according to local English newspaper The Straits Times.

    An SGX spokesman said that the reforms, which may come into force by June, were 'targeted and proportionate adjustments' to strengthen governance and foster greater disclosure and transparency.

    Among the main problems identified by the SGX is that of bosses pledging their shares as collateral for loans. This practice has blown up in investors' faces in recent years. They involve a loan extended to a company boss using stocks as collateral, which triggers a crisis when he fails to make repayment.

    Under the tightened rules, major shareholders will have to disclose any pledging of shares under a financial arrangement if the stake exceeds 30 percent.

    The SGX also wants to strengthen oversight by requiring at least one independent director to stay on the board at all times for "continuity reasons".

    It will also move to require listed firms to get its approval for filling such posts as directors, chief executives and chief financial officers if the company is being investigated or has a poor compliance record.

Special Report:  Global Financial Crisis