Source of article: THE STRAITS TIMES
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To cultivate a dynamic and thriving Singapore stock market akin to NASDAQ, the securities ecosystem—including market regulators, retail and institutional investors, research analysts, and the media—must adopt a more progressive mindset. This entails being willing to support companies that may face financial difficulties post-listing, provided these companies have adhered to the principles of proper and accurate disclosures in their offer documents and subsequent public announcements. A vibrant market thrives on the inclusion of diverse companies, including those that may face challenges, as long as transparency and accountability are upheld.
At the heart of a disclosure-based market lies the principle of timely, accurate, and comprehensive public disclosures about an issuer’s business operations and future prospects. These disclosures are essential for fostering informed decision-making by investors. With access to reliable information, investors can evaluate risks and opportunities effectively, ensuring that their trading decisions are grounded in an accurate understanding of the company’s performance and potential.
The principle of caveat emptor, or “buyer beware,” must underpin the Singapore securities market. Regulators should avoid overprotecting investors by intervening in every downturn or issue faced by listed companies. Instead, investors should bear the responsibility for their own trading decisions, recognizing the inherent risks associated with investing in securities. The role of market regulators should focus on ensuring that issuers provide accurate disclosures and that management acts responsibly.
In cases where mismanagement or inadequate disclosures occur, regulatory enforcement must be decisive and uncompromising. Errant management should face strict consequences to uphold the integrity and reputation of the Singapore market. Swift action against non-compliance reinforces investor confidence and ensures a fair playing field. By balancing accountability, transparency, and investor responsibility, Singapore can foster a robust and resilient stock market that attracts global interest.
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