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This comes after the city-state witnessed a slew of bond defaults, including by Noble Group, Hyflux and Swiber Holdings, which left retail investors suffering losses in recent years.
In a bid to ramp up investor protection, Singapore is looking at ways to tighten regulation of real estate investment trust sector and retail bond issues, reported Bloomberg.
SGX RegCo, the regulatory arm of Singapore Exchange, will set up a working group that will review and improve disclosures relevant to retail bonds, said SGX RegCo CEO Tan Boon Gin in a statement laying out the goals of his organization for the rest of the year.
This comes after the city-state witnessed a slew of bond defaults, including by Noble Group, Hyflux and Swiber Holdings, which left retail investors suffering losses in recent years.
The working group will explore ways to provide clarity on the trustees’ role and how investors could better exercise their rights in case of a default. A public consultation will be conducted following the review.
Tan revealed that SGX RegCo will also consult on a more robust regime for property valuations as it targets to make Singapore an international centre for REITs.
These include proposals for valuation reports to meet the same standards set by the Singapore Institute of Surveyors and Valuers and to ensure property valuers possess qualifications from professional bodies.
Other initiatives announced by SGX RegCo include the review of the minimum trading price policy for listed companies, review of the listing due-diligence guidelines by the Association of Banks in Singapore and a new framework for the quarterly reporting of companies.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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