Singapore Plans Curbs to Avoid Repeat of Penny-Stock Rout
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Singapore is bringing in tougher rules for its equity market to help restore investor confidence after a penny-stock slump erased $6.9 billion in market value from commodity companies over three days in October.
Regulators will impose a minimum trading price of S$0.20 for mainboard shares because low-priced securities are more susceptible to excessive speculation and potential market manipulation, according to an Aug. 1 statement from the Monetary Authority of Singapore and Singapore Exchange Ltd. The city-state will start requiring investors to lodge collateral worth 5 percent of trades and provide more information about short positions. It also plans to reduce the lot size for transactions.