SGX mulls setting minimum share price for mainboard-listed firms

Cheap securities pose significant risk.

The Singapore Exchange (SGX) yesterday unveiled a detailed proposal on the minimum trading price requirement and proposed changes to the existing watch-list, which aims to address risks associated with cheap stocks and improve overall market quality.

Under the proposal, the SGX will set a minimum trading price of S$0.20 for Mainboard stocks. A one-time transition period of 12 months from the date of introduction of the minimum trading price requirement will be given to affected issuers to undertake corporate actions to meet the new requirement.

Those which are unable to meet the requirement after the 12-month transition period will be placed on a watch-list. Issuers which are unable to take steps to raise its minimum trading price and exit the watch-list will be delisted after a 36-month cure period.

SGX targets to introduce the minimum trading price requirement and adjustments to the existing watch-list requirements by March 2015, and for them to take effect from March 2016.

The Consultation Paper covering proposals on both the minimum trading price and notification requirements can be viewed at https://www.sgx.com/wps/portal/sgxweb/home/regulation/consult_pub/consult_papers

Also Read

Low inflation in Singapore unlikely to hold in 2Q24

Lower private transport costs ease inflation to 2.7% YoY in March

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit