Date: August 21, 2015
It is important for investors to know the company in which they have invested, especially its fundamentals. If the person or persons responsible for the report are found to be mischievous then the company must take prompt legal action and, if the facts indeed are found to be mischievous and misleading, SIAS calls also on the authorities to take police action. It is the small investors who always suffer the consequences. Retail investors should also exercise caution and not accept anonymous reports readily. They should wait for the companyﾒs reply to the report before acting. It is good practice for companies in such situation to request for trading halt, as in this case, and disclose information to the investors to enable them to make an informed decision.
SIAS calls on all listed companies to be as transparent as possible to their shareholders to prevent such attacks from members of the online community who indulge in such attacks for personal gain. Companies must be prompt in responding to such attacks to ally the fears on the part of the investors and consequently avoid losses.
David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)
