A diversity deadline is looming this weekend for companies listed on the Bermuda Stock Exchange (BSX), which were required to have had 15 percent of their securities in the hands of the public by May 31.

And the BSX believes that local companies listed on the Exchange, which are facing increased regulation, have accepted the stricter guidelines and are collectively evolving into a mature market.

This weekend's deadline ends the 12-month grace period offered by the exchange from the effective date of the new listing regulations last year, with regard to the virtual definition of public companies.

Main board issuers must have a minimum of 30 shareholders by the end of the month and small capitalisation stock issuers must have 20 shareholders.

BSX chief operating officer, Greg Wojciechowski, yesterday commenting on the looming deadline said, "By virtue of the way the companies were publicly distributed before, we set out the deadline to allow a period of time. As of the deadline date, we will undertake to see who does and who doesn't (conform to the requirements).

"We've just put that out so that everyone completely understands what's expected of them by the particular period we have set out.

"Do some do and some don't? I think that is irrelevant right now. At the end of our grace period, it will be relevant and we will discuss it with them.'' In an effort to improve the workings and reputation of the long-neglected exchange, officials have sought a stricter code of practices for all listed companies.

It has been a learning curve for some smaller companies, who have been forced to change out-dated and often inefficient practices.

Mr. Wojciechowski said that other requirements of the listing regulations are being met, including the reporting requirements.

Companies are required to report to the exchange key financial information on a timely basis and make changes to company by-laws to bring them in line with the regulations.

He said, "We're satisfied with the way the companies are approaching the listing regulations and we're satisfied with the attempt they are making to change their current procedures to provide the public with more information.

"In terms of very basic information, like dividend reporting, all the companies are really complying with our deadlines right now.

"In the past, we had circumstances where we weren't informed of dividends until after they were on record. We're finding out before record, so the market knows. That is a really healthy sign. Material disclosures are coming out, releases are being made.

"In a new type of regulatory regime, to see everyone complying and rolling into the regulations, is good. My perception of it is that people have been graced and are trying to make a concerted effort to comply with the regulations.

"The perception has started to shift a bit, too. Before, giving this information was perceived as perhaps giving away a company secret. But I think that the whole market, as a whole, is maturing a bit. They are seeing that this information is meant more as a benefit.'' Meanwhile, the BSX is sifting through corporate responses, invited during a consultation period that ended on May 1. Listed issuers were invited to comment on concerns that may be causing them specific problems, from a procedural point of view.

Mr. Wojciechowski said that it was an opportunity for the BSX to seek ways to fine tune the regulatory process, through input from issuers.

He also noted that the new regulatory environment has not caused any companies to delist from the exchange.