Published On: Tue, Aug 26th, 2014

SGX To Introduce Reduced Board Lot Size From 19 January

Magnus Bocker CEO of SGX -

Magnus Bocker CEO of SGX –

Singapore Exchange (SGX) will reduce the standard board lot size of securities listed on SGX from 1,000 to 100 units from 19 January 2015. A smaller board lot size will make it more affordable for retail investors to invest in a wider range of equities, including blue chips, and enable them to build more balanced and diversified portfolios.

The reduction will apply to ordinary shares, including shares traded on GlobalQuote, real estate investment trusts, business trusts, company warrants, structured warrants and extended settlement contracts. Existing counters[1] with board lot sizes of 100 or less units will remain unchanged.

Magnus Bocker, CEO of SGX, said: “The reduced board lot size will benefit all investors and make it easier to invest in blue chips and index component stocks which tend to be higher-priced. It will also allow institutional investors to better manage their risk exposures through finer asset allocation of funds.”

David Gerald, President and CEO of Securities Investors Association (Singapore), said: “This is a much anticipated move that will be welcomed by our citizens. Now that blue chip stocks are more accessible in board lot size of 100 units, I would encourage retail investors to seriously consider share investing as a way to diversify their portfolio and grow their savings for retirement. SIAS hopes that citizens will invest with knowledge.”

The board lot sizes for exchange traded funds [2], American Depositary Receipts and fixed income instruments, including retail bonds, Singapore Government Securities and preference shares will remain unchanged.

Amendments will be made to the Listing Rules to cater for the reduction of the board lot size. Details are available at this link and include:

• Removal of Mainboard Listing Rules relating to board lot sizes for structured warrants; and

• Amendments to Mainboard and Catalist Listing Rules to require issuers to specify in the annual report, the number of shareholders who hold less than 100 shares.

[1] For securities with more than one board lot size, the counters with a current board lot size of 100 units or more will be consolidated into a single board lot size of 100 units. For example, Singtel is currently traded in board lots of 1,000, 100 and 10 units. After the reduction of board lot size, Singtel will only be traded in board lots of 100 and 10 units.
[2] Except for SPDR STI ETF and ABF SG Bond Fund for which the board lot size will be reduced to 100 units.

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