SINGAPORE, Aug 1 (Reuters) - Singapore will implement wide-scale reforms to its equity market rules following a penny-stock scandal last year, its central bank and stock exchange announced on Friday.
After a three-month public consultation process that ended on May 2, the Monetary Authority of Singapore (MAS) and Singapore Exchange Ltd (SGX) agreed on a number of changes including minimum trading prices, new collateral rules, short-selling reporting, and new independent committees to examine listing applicants and impose regulatory sanctions. bit.ly/1oUPVBW
From March 2015, Singapore will have a minimum trading price of S$0.20 ($0.16) for main board-listed issuers and a transition period of 12 months.
The new rules will impact about 220 companies listed on SGX, but regulators expect most companies to comply through “share consolidation” during the transition period, after which there will be a grace period of three years.
1 US dollar = 1.2495 Singapore dollar Reporting by Anshuman Daga; Editing by Rachel Armstrong