What is Naked Short ?

Short sell not covered back on the same day = Naked Short !

If you sell a stock without owning it, and you did not buy back on the same day, you are performing a naked short. In order to fulfil the contract to deliver the shares (Known as scrips. We are using electronic system so the system is scripless), SGX have to initiate a buy in for you.

SGX will BUY-IN on T+4 11.30am and only your broker/dealer/remisier can access to that on their terminal.

The buy-in price is MAX of (T+3 close price, T+4 11.30am last done price, T+4 11.30am bid price) + 2 bids higher as penalty. If SGX still could not find a seller at that price, it will increase the bid at certain interval until a seller could be found.

For those wanting to sell to SGX in the buy-in can contact your broker/dealer/remisier to do it for you, however each time they could only process 1 counter. ONE CONDITION, your holding must be already paid up and under "free" status in CDP then you can use that to sell to SGX in the buy-in. Contra holding is not allowed. BEST still, you will get back the capital on that day rather than the T+3 or T+4.