SGX unveils survival guide for firms under short-seller siege

Transparency and speed are crucial.

Dreaded short-sellers have swarmed on a number of Singapore-listed companies in recent months, and the SGX today issued a a statement to help companies deal with such attacks.

SGX stressed that regulated short-selling is part of a well-functioning market, as it supports market liquidity and efficient price discovery.

When trading activity becomes unusual, however, the regulator said that companies must reply as quickly as possible to trading queries.

Companies must also swiftly deal with media reports regarding its financials and any other material information.

"A company under attack by short-sellers, or through highly critical reports by research firms and even leading commentators, must be sensitive to the severity of the situation and must provide, as much and as quickly as possible, a full response so that shareholders have a complete picture and can make informed decisions," SGX said.