Singapore Strengthens Securities Rules After Penny-Stock Rout
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Singapore is strengthening its securities rules to help restore investor confidence after a penny-stock slump erased $6.9 billion in market value of commodity companies over three days in October.
The regulators will impose a minimum trading price of S$0.20 for mainboard shares to reduce risks of low-priced securities being more susceptible to excessive speculation and potential market manipulation, according to a joint statement by the Monetary Authority of Singapore and Singapore Exchange Ltd. on Aug. 1. The city-state will reduce the lot size for transactions.