Posted on 10/29/2013 9:24:54 PM PDT by TexGrill
(Reuters) - Singapore Exchange Ltd (SGXL.SI)'s role as the city-state's equity market regulator is coming under increasing scrutiny in the fall-out from a penny stock crash earlier this month.
The sudden implosion of Blumont Group Ltd (BLUM.SI), LionGold Corp (LION.SI), and Asiasons Capital Ltd (ASNS.SI) - after huge run-ups in their share price earlier in the year had turned them briefly into billion dollar companies - left many in the market mystified and raised question marks over whether the exchange missed red flags and was too slow to act.
The Monetary Authority of Singapore (MAS) has now stepped into the fray and confirmed on Thursday that a review into what went on was taking place.
Experts say one thing it should look at is whether the bourse is able to manage conflicts of interest between its role as both market operator and watchdog.
"The exchange has to focus on profit for shareholders, meaning they have less time for regulation," said Jimmy Ho, president of the Society of Remisiers who works for brokerage UOB Kay Hian.
Singapore is sensitive to anything that could tarnish its reputation for strong corporate governance, effective regulation and low levels of crime and corruption, which have helped it develop into one of Asia's major financial centers.
The saga also poses a threat to the exchange's long-running push to increase revenue by boosting its trading volumes among retail investors.
(Excerpt) Read more at reuters.com ...
Sounds like a major pump and dump.
You would think shell companies with rapid growth would get noticed, someone might have wondered, what does that company actually do?
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