SGX to introduce minimum trading price for mainboard-listed firms

SINGAPORE, Sept 18 (Xinhua): The Monetary Authority of Singapore and the Singapore Exchange (SGX) have decided to introduce a minimum trading price for mainboard-listed stocks as a continuing listing requirement, the exchange said yesterday.
"Given the strong public support for the requirement, SGX will proceed to set a minimum trading price of 0.2 Singapore dollars for mainboard stocks," it said.
The exchange is doing a public consultation to invite comments on the details of the requirement until October 16.
Under the proposed new rules, 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 watchlist.
Issuers which are unable to take steps to raise its minimum trading price and exit the watchlist will be delisted after a 36- month cure period.
The move is aimed to "address risks associated with low-priced securities and to improve overall market quality," SGX said.
SGX is also proposing adjustments to the existing watchlist framework accordingly. It targets to introduce the minimum trading price requirement and adjustments to the existing watchlist requirements by March 2015, and for them to take effect from March 2016, it said.