Singapore Exchange Ltd. established an independent regulatory unit and named Tan Cheng Han as the unit's chairman.

Singapore Exchange Regulation Pte. Ltd., or SGX RegCo, will handle the exchange's front-line regulatory functions, separating it from the bourse's commercial and operating activities. The new unit is expected to start operations in the third quarter of 2017, SGX said April 6.

Tan will resign from his board positions in several companies to ensure his independence from SGX, its members and any company listed on the bourse. He will also step down as deputy chairman of the bourse's listings advisory committee.

In addition, Tan Boon Gin, the bourse's chief regulatory officer, was appointed as CEO and board member of SGX RegCo. The unit will have a separate board of directors from SGX. All other appointments will be made in due course.

SGX announced the plan to transfer its regulatory functions to a separate subsidiary in July 2016.