How New SGX Regulations Will Affect You – 4 Aug 2014

Posted on August 4th, 2014 in SG market update, SG stocks


We have distilled the latest SGX Regulations announced on 1 Aug 14 and highlight the salient ones that will affect you, the retail investor

Upcoming Changes in Singapore Stock Market Regulations that will affect you.


1)   Minimum price as a continuing listing requirement for company shares listed ONLY on the SGX Mainboard

A minimum trading price of S$0.20 as a continuing listing requirement for company shares listed on the SGX Mainboard – While this tries to address risks of low-priced securities being susceptible to speculation and manipulation, it doesn’t mean that you can assume it will no longer happen.  Most affected companies are likely to consolidate their shares so that their share price is well and above S$0.20 unless they can boost their share price organically through good financial performance.

Expected date of implementation: Mar 2015.  Companies will have up to 4 years from Mar 2015 to comply.  Companies that don’t comply may be forced to delist.

2) More cash outlay required


Securities intermediaries like your brokerages houses will have to collect at least 5% of collateral from you for trading of listed company shares. Exempted from this rule are institutional investors (Big boys, not you and us), trades settled through delivery-versus-payment mode, and funds from the Central Provident Fund and Supplementary Retirement Schemes.

For those affected, you will have to keep  cash collateral in trust accounts with licensed banks in Singapore at all times, except for cash collateral collected in relation to trades on overseas securities exchanges such as NASDAQ.

Expected date of implementation: Mid 2016


3)   Expensive stocks become “cheaper” to buy

SGX will reduce the board lot size for securities listed on SGX from the existing 1,000 shares to 100 shares.


Expected date of implementation: Jan 2015.  More details will be provided by end August 2014.

Our Best, Always!


Like us on Facebook

Share our postings, be our Facebook Ambassador and win prizes!

1) For Android Phones/Devices 

2) For Apple Phones/iPads 



* Download “Empower Advisory” App on your mobile phone/device to get INSTANT Updates on Deals, Events and More!


* Simply Scan the QR Code on the left using your mobile phone, follow the link and install the App!


* If you are already accessing this page on your mobile phone, click on the QR Code, follow the link and install the App !

Do you have any enquiries?
Alternatively, you may contact us via the following mode:

Call / SMS / Whatsapp: (65) 8332 4283 LINE ID – empower_advisory | Wechat ID: EmpowerAdvisory