Home Capital Market Singapore Exchange Issues Alert on Stocks Trading Scam in Chat Groups

Singapore Exchange Issues Alert on Stocks Trading Scam in Chat Groups

Dec 14, 2020

Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more

2024 / 2025 Summits in Hong Kong & Singapore
Institutional Investor Summit / Roundtable - March / Oct / Nov
Investment / Alternatives Summit - March / Oct / Nov
Investment Day - March / July / Sept / Oct / Nov
Private Wealth Summit - April / Oct / Nov
Family Office Summit - April / Oct / Nov
View Events | Register

This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $30 billion.

Singapore Exchange Issues Alert on Stocks Trading Scam in Chat Groups

14th December 2020 | Singapore

Singapore Exchange Regulation (SGX RegCo), the regulatory and governance subsidiary of Singapore Exchange (SGX), has issued an alert to the public on possible stocks trading scam in chat groups such as Telegram. The wrongdoer would engage in “Pump and Dump” schemes, where they would generate interest in buying of a particular stock they own in the chat group, and sell the stocks once it goes up. The wrongdoer typically target at low-price and low-trading volume stocks.

” SGX issues alert on trading scam in chat groups “

- Article continues below -

Sign Up
Basic Member: $5 Monthly | $60 Yearly
Newsletter Daily 2 pm (Promo): $20 Monthly | $180 Yearly (FP: $680)

The 2024 Investment Day
17th Oct Hong Kong | 7th Nov Singapore
Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Join 20+ CIOs & Senior investment team, with > 60% single family offices with $300 million AUM. Taking place on 17th Oct 2024 in Hong Kong, 7th Nov 2024 in Singapore. Every March, July, Sept, Oct & Nov.
Visit | Register here

The 2024 Family Office Summit
17th Oct Hong Kong St Regis | 7th Nov Singapore Amara Sanctuary Resort
Join 80 single family offices & family office professionals in Hong Kong & Singapore
Links: 2024 Family Office Summit | Register here

2024/2025 Institutional Investor Summit / Roundtable
March / Oct / Nov in Hong Kong & Singapore
Join CEOs, CIOs, Senior investment team from Sovereign Wealth Funds, Pension Funds, Endowments, Foundations & Charities in Hong Kong, Singapore & Asia-Pacific at the 2024 Institutional Investor Summit / Roundtable. Join as delegate, speaker, presenter, partner & sponsor.
Visit | Register here

2024/2025 Investment / Alternatives Summit
March / Oct / Nov in Hong Kong & Singapore
Join leading asset managers, hedge funds, boutique funds, private equity, venture capital & real estate firms in Hong Kong, Singapore & Asia-Pacific at the Investment / Alternatives Summit. Join as delegate, speaker, presenter, partner & sponsor.
Visit | Register here

2024/2025 Private Wealth Summit
April / Oct / Nov in Hong Kong & Singapore
Join CEOs, CIOs, Head of Private Banking, Head of Family Offices & Product Heads at The Private Wealth Summit. Join as delegate, speaker, presenter, partner & sponsor.
Visit | Register here

Chat Group:” Pump & Dump Scheme “

For example, the wrongdoer will buy ABC shares and would provide information in group chats to encourage trading on ABC shares. To create more interest, different nicknames / alias may be created to participate in the conversation, and provide more information that ABC shares price will go up.

This will encourage others in the group chat to buy. The wrongdoer will subsequently sell the ABC shares.

Illustration (By SGX Regco)

Step	Action
1	Wrongdoer(s) accumulate shares typically in a low-volume, low-price security.
2	Wrongdoer(s) may enter orders to sell the shares at a higher price.
3	Wrongdoer(s) will post messages in the Telegram chat indicating they are about to enter that security and that interest in the security is building up.
4	Most posts with encouraging messages are made by the wrongdoer(s) in relation to that security and their purported target price for exit. This purported target price is usually higher than the prices at which the wrongdoer(s) has actually queued to sell or intend to sell at.
5	Wrongdoer(s) make small purchases at higher prices and announce in the chat that interest in the security is building up and price is gaining momentum.
6	Wrongdoer(s) may use other aliases to post messages to indicate support for the original posts.
7	Price reaches the level at which they are queuing to sell or intend to sell and wrongdoer(s) will close the position with a profit and may move on to pump and dump another counter.

Singapore Exchange

Alert by SGX Regco

Possible market misconduct activities that exploit Telegram chat groups or other channels for investment strategy
Wrongdoers engage in “pump and dump” schemes by promoting interest in a security for their own benefit
The wrongdoer may work alone or in groups, using chat channels such as Telegram.
When more members of the chat group trade, the stock price will go up and the wrongdoer will sell all the stocks
Information on investments and trades shared on social media, in particular by anonymous individuals, may not be credible.
Investors should always conduct their own due diligence and research on any potential investments, instead of obtaining information on social media

SGX RegCo will refer potential wrongdoer(s) to the statutory authorities for investigation of breaches of the laws.

$11.7 million in Penalties, 9 Convicted for Market Misconduct

In the 2020 Monetary Authority of Singapore (MAS) Enforcement Report covering the period January 2019 to June 2020 (1.5 years), the central bank of Singapore imposed $11.7 million in civil penalties and secured criminal conviction on 9 individuals for market misconduct and related offences.

Singapore Exchange

Singapore Exchange Regulation (SGX RegCo) Board

Founded in 2017, SGX RegCo Board is a subsidiary of Singapore Exchange (SGX) and is a non-profit group to undertake all governance and regulatory function of SGX to ensure integrity and stability of the markets and clearing houses operated by SGX.

SGX RegCo Leadership

Professor Tan Cheng Han, Chairman and Profession of Law at National University of Singapore
Tan Boon Gin, CEO and Chief Regulatory Officer of SGX

Managing $20 million to $3 billion. Investing $3 million to $300 million.
For Investment Managers, Hedge Funds, Boutique Funds, Private Equity, Venture Capital, Professional Investors, Family Offices, Private Bankers & Advisors, sign up today. Subscribe to Caproasia and receive the latest news, data, insights & reports, events & programs daily at 2 pm.

Join Events & Find Services
Join Investments, Private Wealth, Family Office events in Hong Kong, Singapore, Asia-wide. Find hard-to-find $3 million to $300 million financial & investment services at The Financial Centre | TFC. Find financial, investment, private wealth, family office, real estate, luxury investments, citizenship, law firms & more. List hard-to-find financial & private wealth services.

Have a product launch? Promote a product or service? List your service at The Financial Centre | TFC. Join interviews & editorial and be featured on Caproasia.com or join Investments, Private Wealth, Family Office events. Contact us at [email protected] or [email protected]

Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets?

Quick Links

2021 Data Release
2020 List of Private Banks in Hong Kong
2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office
2020 Top 10 Largest Multi-Family Offices
2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion
2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM

For Investors | Professionals | Executives
Latest data, reports, insights, news, events & programs
Everyday at 2 pm
Direct to your inbox
Save 2 to 8 hours per week. Organised for success

Register Below

For CEOs, Heads, Senior Management, Market Heads, Desk Heads, Financial Professionals, Investment Managers, Asset Managers, Fund Managers, Hedge Funds, Boutique Funds, Analysts, Advisors, Wealth Managers, Private Bankers, Family Offices, Investment Bankers, Private Equity, Institutional Investors, Professional Investors

Get Ahead in 60 Seconds. Join 10,000 +
Save 2 to 8 hours weekly. Organised for Success.

Sign Up / Register

Web links may be disabled on mobile for security.
Please click on desktop.

New to Caproasia
Learn More | Sign Up | Subscribe | Register Events

Caproasia Users

Manage $20 million to $3 billion of assets
Invest $3 million to $300 million
Advise institutions, billionaires, UHNWs & HNWs

Caproasia Platforms | 11,000 Investors & Advisors

Monthly Roundtable & Networking

Family Office Programs

The 2024 Investment Day

March 2024 - Hong Kong
March 2024 - Singapore
July 2024 - Hong Kong
July 2024 - Singapore
Sept 2024 - Hong Kong
Sept 2024 - Singapore
Oct 2024 - Hong Kong
Nov 2024 - Singapore
Visit: The Investment Day | Register: Click here

Caproasia Summits

Contact Us

For Enquiries, Membership
[email protected], [email protected]

For Listing, Subscription
[email protected], [email protected]

For Press Release, send to:
[email protected]

For Events & Webinars
[email protected]

For Media Kit, Advertising, Sponsorships, Partnerships
[email protected]

For Research, Data, Surveys, Reports
[email protected]

For General Enquiries
[email protected]

Caproasia | Driving the future of Asia
a financial information technology co.
since 2014