In the meantime, a moratorium is placed on the three-year period for delisting companies currently on the watch list. There will also be no new entrants added to the list.
"We did not know how the implementation of MTP will play out, since then we have seen that there are unanticipated consequences that affected companies and therefore shareholders," he said. Since then, SGX has recognised that the MTP framework"is a blunt tool in addressing the risk of manipulation". Based on the regulator's review, 92 per cent of the 100 companies on the watch list have not been subjects of the"Trade with Caution" alert, neither were they referred to MAS for suspected stock manipulation.
Explaining why it may be challenging for companies to exit the watch list, Mr Tan said:"We have received feedback about the unintended consequences and one of the things we realised is that once you're placed on the watch list, you face certain business constraints such as difficulties borrowing from banks and developing business relationships.As a result, even with share consolidation efforts, none of the companies have managed to successfully exit the list by raising its share price.
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