By Scott Murdoch

SYDNEY, Feb 26 (Reuters) - Australia's securities regulator has urged the nation's stock exchange operator to be more proactive in making it easier and faster for companies to list to revive a flat-lining IPO market.

The Australian Securities and Investment Commission (ASIC), in a discussion paper published on Wednesday, said a decline in the number of listed companies on the Australian Securities Exchange was negative for capital markets.

Initial public offerings raised $2 billion in 2024, LSEG data showed, of which $1.3 billion was raised by a single company - data centre trust Digico DGT.AX.

The figure, excluding Digico's contribution, is a near-decade low. Dealmakers have blamed the slump on global financial market volatility, private buyouts and strict rules governing the IPO process set by stock market operator ASX ASX.AX.

Investment banks have called for a shorter IPO process, in particular the prospectus review - undertaken by both ASX and ASIC - and approval period which combined can take up to a month.

"The ASX does need to be more proactive with the work it needs to be doing with its own listing rules," said ASIC Chairman Joe Longo.

"ASIC is getting confidential submissions on things it can do and we are engaging on what we can do.

"The actual listing rules are a matter for the ASX and we look forward to the ASX accelerating its consideration of these issues."

The ASX has previously told local media it was involved in discussions to streamline and support the IPO market.

The number of listed companies has fallen by 4% in the 10 years through 2024 and A$69.1 billion ($43.89 billion) worth of companies was delisted in the two years to 2024 as a result of buyout activity, ASIC said in its paper.

Declining IPO volume has been recorded globally in recent years, especially in Asia where Hong Kong and Singapore have examined regulatory change to accelerate listing.

"What I'm looking for is some work and thought to be given to what changes can be made to the listing rules and the ASX's approach to that subject which will give people confidence that we are as competitive and as attractive a place to list as anywhere else in the world," Longo said.

ASIC has asked capital market participants to submit proposals for change by April 5.

($1 = 1.5743 Australian dollars)

(Reporting by Scott Murdoch; Editing by Christopher Cushing)

((Scott.Murdoch@thomsonreuters.com;))