05-09-2013, 09:53 AM
To facilitate the discussion, I post an article on SIAS and short-sellers. I highlighted few points for consideration...
SIAS calls on regulators to punish short sellers
SINGAPORE — The Securities Investors Association Singapore (SIAS) yesterday called on regulators to look into tightening short-selling rules, after two recent “reckless, unfounded assaults” on Singapore-listed companies.
“We call on the Singapore Exchange and Monetary Authority of Singapore to look into tightening short-selling rules to prevent and punish these short sellers ... The heavy weight of the law must be felt by these mischievous perpetrators,” said SIAS President and Chief Executive David Gerald.
The comments come after China Minzhong Food was last week accused of accounting irregularities by Glaucus Research, causing half of the S-chip’s market value to be wiped out soon after the report.
The SIAS said yesterday that it has had meetings with China Minzhong and is satisfied the company has “vindicated itself”.
The Fujian-based vegetable producer has since recovered losses suffered on the day of the Glaucus attack, after the S-chip’s largest shareholder, Indonesia’s Indofood Sukses Makmur, launched a takeover for the company valued at S$734 million.
China Minzhong announced yesterday that Indofood has increased its stake in the company to more than 50 per cent, making its earlier offer unconditional.
The China Minzhong incident is reminiscent of another attack by Muddy Waters on commodities firm Olam International last year. Olam denied the allegations and had the support of investment giant Temasek Holdings, which increased its stake in the company.
Mr Gerald said: “Two of our SGX-listed companies have already come under attack and many investors have been hurt by these short sellers. How many more of such reckless, unfounded assaults on honest companies does the Singapore market need to see before such unethical practices are stopped?” LEE YEN NEE
http://www.todayonline.com/business/sias...rt-sellers
SIAS calls on regulators to punish short sellers
SINGAPORE — The Securities Investors Association Singapore (SIAS) yesterday called on regulators to look into tightening short-selling rules, after two recent “reckless, unfounded assaults” on Singapore-listed companies.
“We call on the Singapore Exchange and Monetary Authority of Singapore to look into tightening short-selling rules to prevent and punish these short sellers ... The heavy weight of the law must be felt by these mischievous perpetrators,” said SIAS President and Chief Executive David Gerald.
The comments come after China Minzhong Food was last week accused of accounting irregularities by Glaucus Research, causing half of the S-chip’s market value to be wiped out soon after the report.
The SIAS said yesterday that it has had meetings with China Minzhong and is satisfied the company has “vindicated itself”.
The Fujian-based vegetable producer has since recovered losses suffered on the day of the Glaucus attack, after the S-chip’s largest shareholder, Indonesia’s Indofood Sukses Makmur, launched a takeover for the company valued at S$734 million.
China Minzhong announced yesterday that Indofood has increased its stake in the company to more than 50 per cent, making its earlier offer unconditional.
The China Minzhong incident is reminiscent of another attack by Muddy Waters on commodities firm Olam International last year. Olam denied the allegations and had the support of investment giant Temasek Holdings, which increased its stake in the company.
Mr Gerald said: “Two of our SGX-listed companies have already come under attack and many investors have been hurt by these short sellers. How many more of such reckless, unfounded assaults on honest companies does the Singapore market need to see before such unethical practices are stopped?” LEE YEN NEE
http://www.todayonline.com/business/sias...rt-sellers