Singapore Exchange (SGX) has commenced a public consultation on its plans regarding the minimum trading price requirement.
The exchange is consulting the public on operational details of the proposed new rules.
The process follows responses to the February 2014 Monetary Authority of Singapore (MAS) and SGX consultation on proposals to enhance the Singapore securities market.
MAS and SGX said they have decided to introduce a minimum trading price for mainboard-listed stocks as a continuing listing requirement to address risks associated with low-priced securities and to improve overall market quality.
The exchange said it will set a minimum trading price of S$0.20 for mainboard stocks. SGX intends to introduce the minimum trading price requirement and adjustments to the existing watch-list requirements by March 2015, and for them to take effect from March 2016. That gives affected issuers a one year transition period to comply.