Does indefinite suspension of a stock help or hurt shareholders?

INVESTORS of Singapore-listed companies might be better served if there were stricter rules around trading suspensions. Long-suspended companies without clear means of having the suspension lifted within a strict time limit should be delisted.

Of the 630 companies listed on the Singapore Exchange (SGX) at the end of March, nearly 10 per cent of them – or 61 stocks – are suspended.

Current listing rules by the bourse regulator, SGX RegCo, say trading suspensions “may persist for a prolonged period”. But this rule means investors may take years – even decades – to see a resolution. And some companies may even benefit from being able to continue claiming a listed status.