SINGAPORE: Singapore's central bank said on Monday (May 28) it will require investors to report short positions and short sell orders in securities listed on the Singapore Exchange from Oct 1 to improve transparency on such activities.
Under the new rules, investors with short positions above the threshold of the lower of 0.2 per cent of total issued shares or S$2 million will have to report the positions to the Monetary Authority of Singapore (MAS).
AdvertisementMAS said the rule will improve transparency on short selling activities in the market and enable investors to make more informed trading decisions.
MAS will publish aggregated short positions of each security on Wednesday of each week.
The rule was proposed initially in 2016 amid a growing number of public short-selling campaigns against listed companies in the region.
Short selling involves the sale of a security that the seller does not own, or has borrowed, believing that the security's price will decline so that it can be profitably bought back at a lower price.
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