SINGAPORE - The Singapore Exchange has lifted the trading suspenion on shares of ISR Capital but issued a "trade with caution" warning on the company.
Trading of ISR shares, suspended from Nov 27 last year, will resume on March 6, SGX announced on Wednesday (March 1).
It said the lifting follows the disclosure in the Singapore State Courts on Tuesday (Feb 28) that the authorities are investigating John Soh Chee Wen, the alleged mastermind of Singapore's 2013 penny crash, for manipulating the share price of ISR as well as being involved in its management.
On Nov 25 last year, Soh was one of three individuals charged with manipulating the shares of Asiasons Capital (now Attilan Group), Blumont Group and LionGold Corp between August 2012 and October 2013. The shares surged between 150 and 800 per cent in less than nine months, before losing most of their market value in just three days in October 2013, wiping out more than S$8 billion in value.
Soh, who was denied bail on Tuesday, now faces 188 charges in Singapore's biggest securities fraud case/
SGX said that taking into account the above-mentioned disclosure of information in the State Courts, it urges shareholders and investors to exercise caution when dealing in ISR shares once trading resumes.
SGX said it will continue to monitor the trading activities of ISR shares.
In court on Tuesday, the prosecution objected to bail for Soh saying evidence had emerged that allegedly show that he had tampered with witnesses linked to the probe of ISR Capital, formerly known as Asiasons WFG Financial.
Investigators found some trading accounts linked to Soh were allegedly involved in ISR shares skyrocketing 2,800 per cent between May and November last year. After Soh's arrest, the shares dived 55 per cent, erasing S$247 million in market value.