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 issu...
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Yasmine Yahya
08 February 2014
The Singapore Exchange (SGX) is making some changes to the way it queries companies about unusual fluctuations in the trading of their stocks.
For example, companies will be given more details on how to answer these queries. If they cannot explain the unusual trading of their shares, investors will be warned to trade those stocks with caution.
The changes follow a joint review with the Monetary Authority of Singapore and the penny stock crash of October last year, which had been preceded by unexplained surges in the trading of penny stocks.
They will take effect on March 3.
SGX said yesterday it will enhance its public query process by providing further guidance and details to companies.
The bourse operator will now provide, as a guide, examples of yet-to-be disclosed information that could explain the trading patterns.
It will also require the company’s board of directors to approve the company’s reply to SGX’s query and state in its response to SGX that the board’s approval has been obtained.
Currently, most companies already seek their boards’ approval when responding to public queries. This is a good practice and should be codified, SGX said.
SGX will then publish a “Trade with Caution” announcement if companies are unable to explain the unusual trading activity.
“This announcement from SGX will remind investors to be cautious when trading in that company’s stock. It will also serve as a warning that the trading activities in that company’s stock could be caused by market forces other than the corporate developments of the company,” SGX said.
And companies will have to notify SGX of discussions or negotiations that are likely to lead to a takeover, reverse takeover or a very substantial acquisition. SGX will keep such notifications confidential, it said.
These companies are also required to keep a list of names of persons privy to the transaction.
Separately, SGX said it is revising the fee structure for securities trading, in a bid to lower costs and improve liquidity in the market.
The revisions to clearing and depository fees will be rolled out on May 2, the bourse operator said yesterday.
The clearing fee will be reduced by one-fifth from 0.04 per cent to 0.0325 per cent of contract value.
The cap of $600 on this fee for contracts of $1.5 million or more will be removed.
Transfers and onward settlement fees, which are mainly levied on brokers and depository agents, will also be revised.
Transfers and onward settlements for on-exchange trades will be charged a fee of $30, and transfers and settlements for off-exchange trades will be charged a fee of 0.015 per cent of the value of the transaction, subject to a minimum of $75.
These changes will encourage on-exchange trading, thereby enhancing liquidity, transparency and price discovery on the market, SGX said.