The Monetary Authority of Singapore (MAS) and Singapore Exchange Regulation (SGX RegCo) have warned the investing public to be careful when it comes to trading in securities that are incited by online discussion forms and social media chat groups.
This follows SGX RegCo’s warning issued on Dec 10, 2020, warning the public of “pump and dump” activities that exploit Telegram chats and other social media channels.
The joint announcement on Feb 2 comes as both MAS and SGX RegCo have noted Singaporean investors’ interest in the recent activities in the US markets that are related to GameStop, AMC Entertainment Holdings and BlackBerry.
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According to the statement, “discussions in online websites and platforms suggest the possibilities for similar speculative activities in the Singapore stock market,” say MAS and SGX RegCo.
“The public should be aware that certain individuals may exploit this interest for their own benefit through “pump and dump” activities that can amount to market misconduct under the Securities and Futures Act (SFA),” they add.
Furthermore, MAS and SGX RegCo say they are “closely monitoring” market activities for signs of false trading or “other forms of misconduct”. Following which, restrictions may be placed on the trading accounts of those suspected to be engaging in such activities.