Introduce exclusion clause for contra trading

Immediate family members can apply to exclude an individual from casinos in Singapore to protect the family from any harm that could arise from gambling.

However, this option is not available to family members if an individual dabbles in contra trading, which is the buying and selling of shares without upfront cash.

This kind of trading will be phased out when collateralised trading - where investors need to put up some capital when they buy a stock - takes effect in 2018.

However, in the meantime, the losses and effects of contra trading are as detrimental as gambling, if the individual is hoping for quick gains.

The ease of getting loans from banks makes contra trading even more tempting for this type of traders. Eventually, if they cannot repay the loans, they cause suffering to their loved ones and to themselves.

In the intervening time before collateralised trading kicks in, I hope the authorities can give immediate family members the option of excluding an individual from contra trading.

Banks could also share information with one another and not allow loans when an individual is assessed to have exceeded the limit, based on his income.

Mahinder Singh