Want to own stocks of S’pore banks? It will cost less to get started from Oct 5
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Board lot sizes will be reduced from Oct 5 to help more investors gain access to the Singapore market.
PHOTO: LIANHE ZAOBAO
- SGX will reduce the standard board lot size from Oct 5, allowing investors to buy as little as one unit for stocks priced above $100, including major banks like UOB, OCBC and DBS.
- The board lot size cuts aim to make investing more affordable and accessible, with quarterly reviews planned to include more stocks if eligible.
- SGX will allow broker custody accounts to hold multiple clients' securities starting July 15, aligning with global practices and enhancing investor protection through proposed stricter oversight and service standards.
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SINGAPORE – Want to own shares in Singapore’s local banks, but cannot afford to fork out thousands of dollars?
Soon, you will not need as much money to do so. The standard board lot size will be reduced from Oct 5, giving investors easier access to the Singapore stock market.
The Singapore Exchange (SGX) said on July 1 that the standard board lot size will be cut from 100 units to 10 units for instruments priced above $10, up to $100.
For instruments priced above $100, the standard board lot size will be cut from 100 units to one unit.
Besides stocks, the changes will also cover stapled securities, real estate investment trusts, business trusts, company warrants, excluding special purpose acquisition company warrants, as well as depository receipts and depository shares.
The initial reduction will take place for 11 stocks priced above $10. They are UOB, OCBC, DBS, Keppel, Venture Corporation, Great Eastern Holdings, Haw Par Corporation, Jardine Cycle and Carriage, Jardine Matheson Holdings, Prudential and SGX.
These stocks accounted for 35 per cent of trading activity on SGX in the first six months of 2026.
DBS shares have been trading around $65 to $66 as at mid-2026. OCBC shares have been hovering slightly below $25, and UOB’s between $37 and $40.
The board lot size reductions will remain even if the stocks fall below the $10 or $100 thresholds, SGX said.
“The board lot revision is thus expected to lower barriers to market participation and improve affordability for retail investors,” it added.
SGX will conduct a review every quarter to see if additional instruments can qualify for the reduced board lot size.
The next review will take place in January 2027. It will take into consideration daily closing prices from July 2026 to December 2026.
SGX noted that any changes to the board lot size will be announced within the first five trading days after the end of each calendar quarter.
Changes to rules around broker custody accounts
SGX also announced changes that will allow depository agents to hold securities on behalf of clients in omnibus broker custody accounts from July 15.
Broker custody accounts refer to investor accounts where assets are registered under the name of the brokerage company.
An omnibus broker custody account refers to an account that combines the assets and trades of multiple customers under a single broker.
SGX said the adoption of broker custody accounts continues to rise, with six such accounts opened for every direct account opened with the Central Depository over the period from October 2024 to April 2026.
“This change aligns Singapore’s custody structure with global practice and is expected to make Singapore more attractive for international intermediaries and provide investors with more choices,” SGX said.
SGX’s regulatory arm also proposed to subject depository agents to enhanced requirements and oversight to ensure that retail investors opting for broker custody accounts are well served.
The proposals include implementing minimum service standards for brokers and depository agents to safeguard shareholder rights.
SGX said that, subject to regulatory approval, depository agents may be given time to comply with these standards, which cover matters such as how they handle corporate actions and help investors attend shareholder meetings.
For instance, some brokers notify customers about upcoming annual general meetings (AGMs), while others do not.
By 2027, all brokers that are SGX members must notify customers about AGMs, unless customers have opted out of receiving such information.
Investors might also have different lengths of time in which to respond to corporate actions, depending on their brokers.
SGX’s new standards will set a baseline that requires brokers to ensure their processes give investors enough time to respond to corporate actions. This could mean, for example, letting investors use digital processes instead of physical paperwork to subscribe to a rights issue.
