SGX cuts board lots for 11 stocks including major Singapore banks

The Singapore Exchange has reduced board lot sizes for 11 stocks, marking a strategic effort to enhance market participation among retail investors. The move lowers the minimum investment required to purchase shares in affected companies, reducing barriers to entry for smaller investors who may have previously found the costs prohibitive.

Three of Singapore's systemically important banks are included in the restructuring, signalling the significance of the initiative for major listed companies. Board lot reductions typically make equity participation more affordable by decreasing the number of shares required in a standard trading unit, thereby reducing the capital outlay needed for new investors.

The Singapore Exchange has positioned the change as part of broader efforts to democratise market access and attract a wider investor base. Lower board lots are expected to increase liquidity in affected securities by reducing share prices relative to previous minimum purchase requirements, potentially encouraging greater participation from individuals with limited capital.

The initiative reflects wider regional trends among Asian exchanges seeking to modernise trading mechanisms and expand investor reach. By lowering structural barriers to participation, the SGX aims to strengthen market depth while supporting retail investor engagement with the equities market.