Singapore Exchange (SGX) plans to introduce a minimum trading price requirement as part of changes aimed at curbing excessive speculation on penny stocks listed on the bourse.
SGX in a statement on Wednesday set a minimum trading price of 20 Singapore cents for stocks on the main board, effective from March 2016.
Companies whose share prices trade below 20 Singapore cents will be given 12 months to reach the threshold. Failure to do so would see the stock put on a watch-list for up to 36 months before being delisted.
The minimum price requirement is part of a plan announced in February by the Monetary Authority of Singapore and SGX, which involves new collateral rules, short-selling reporting and the establishment of an independent listing committee.
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