Singapore’s ECM reforms to do more harm than good

Singapore city 230px
By Rashmi Kumar, Rev Hui
07 Aug 2014

Singapore plans to reform its equity capital markets to improve transparency and control excessive speculation and manipulation of penny stocks. However, market participants have warned that, although the city state is well intentioned, the negative consequences will outweigh any positives, write Rashmi Kumar and Rev Hui.

In a slew of changes, the Monetary Authority of Singapore and the Singapore Exchange are clamping down on how low shares can trade — making S$0.20 ($0.16) the minimum trading price of any listed stock.

The regulators' reasoning is not hard to understand. They want to address the ...

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