No issue with SGX on penny stocks action: Sias
Investor lobby group says it is satisfied with the explanation on steps taken
Remisier kings
The cousins who have taken over Peter Lim’s throne View PDF
Popular posts from this blog
Ex-bank owner Agus Anwar declared bankrupt
Prominent former bank owner Agus Anwar was yesterday declared bankrupt by the High Court.
Two ex-UOBKH staff charged with lying to MAS over due diligence reports on a Catalist aspirant
TWO former senior employees of UOB Kay Hian Private Limited (UOBKH) were charged on Wednesday for allegedly lying to the Monetary Authority of Singapore (MAS) in relation to reports on a then Catalist aspirant. Lan Kang Ming, 38, and Wee Toon Lee, 34, each face three charges of providing MAS with false information in October 2018 in relation to due diligence reports on an unidentified company applying to list on the Catalist board of the Singapore Exchange. MAS said in a media statement on Wednesday that it was performing an onsite inspection of UOBKH between June and August 2018, to assess the latter's controls, policies and procedures in relation to its role as an issue manager for Initial Public Offering (IPOs). During the examination, Lan and Wee were said to have provided different versions of a due diligence report relating to background checks on a company applying to be listed on the Catalist board of the Singapore Exchange. UOBKH had acted as the issue manager
Comments
Investor lobby group says it is satisfied with the explanation on steps taken
Jonathan Kwok
30 October 2013
Singapore’s main investor lobby group is satisfied with the way the Singapore Exchange (SGX) handled the penny stock controversy.
The Securities Investors Association (Singapore) (Sias) met top regulatory officers from the SGX on Monday to seek clarification over the actions taken over Blumont Group, LionGold Corp and Asiasons Capital.
“Many had suggested to Sias that SGX was too slow in taking action,” said a Sias statement yesterday.
“Sias was advised by SGX that as a regulator it had taken measured steps and used all three main regulatory tools available to it - namely, to query the respective companies on unusual trading patterns as and when it happened, suspend the stock, and designate the three stocks at the appropriate times.”
SGX told Sias that its main concern is to maintain a fair, orderly and transparent market, referring potential market misconduct to the Monetary Authority of Singapore and Commercial Affairs Department.
The front-line regulator also publishes its queries of companies, which serve as red flags to investors when trading activity is unusual.
“SGX made it clear that making a query is not an expression of opinion on the stock queried nor is it the function of SGX to comment on the value of the stock concerned,” said the Sias statement.
“This places the onus on investors and traders to make informed judgments.”
Sias also said that its officers - president David Gerald and vice-president Siow Chai Sheng - were shown price movements, corporate announcements and the timings of the SGX queries on the three impacted stocks.
The SGX’s representatives at the meeting include chief regulatory and risk officer Yeo Lian Sim and deputy chief regulatory officer Richard Teng.
Sias said it “accepts the explanation given by SGX on the steps taken by it”.
It repeated an earlier call for SGX and other authorities to investigate the share price activity in the three stocks.
After strong rises in recent months, shares in Blumont, Asiasons and LionGold tumbled dramatically earlier this month, prompting SGX to slap trading suspensions on the three counters.
When the suspensions were lifted, the three counters were named as “designated securities”.
This meant buyers of shares in the three companies had to pay cash upfront instead of getting the usual three-day grace period to make payment.
The bourse also disallowed short-selling on the counters.
The trading restrictions were lifted on Oct 21 so they now trade like any other counter.
Mr Gerald told The Straits Times yesterday that SGX should speed up the introduction of circuit breakers.
These will automatically halt trade if a stock’s price fluctuates violently, and can be another regulatory tool for the SGX to use in future incidents, said Mr Gerald.
Sias will also be holding a forum to discuss the rights of the shareholders of the three affected stocks on Nov 14.
Admission is by registration only, and those keen to attend can register at its website www.sias.org.sg.