SGX warns firms against misconduct in share buybacks

Singapore

THE Singapore Exchange (SGX) has advised companies to be careful not to breach insider trading or market manipulation rules when conducting share buybacks, suggesting, for instance, that they refrain from going into the market shortly before the release of financial statements.

In a regulator's column on Nov 26, Singapore Exchange Regulation (SGX RegCo) chief executive officer Tan Boon Gin cautioned that while a share buyback "serves as a useful capital management tool", using one to carry out any form of market misconduct such as insider trading or creating a false market is illegal.