Short-selling refers to the selling of shares not owned in the hope of making profits by buying them back later at a lower price. Under current rules, short selling is not illegal. However, the system requires a short seller to cover the position within the same day or be bought in four days later at prices that start above the prevailing market price.

The SGX will buy-in against the short seller who fails to deliver on due date without giving any notice. On the day of buying-in, the SGX will at 11.15 a.m. enter the list of stocks to be bought-in, the number to be bought-in, and the price which SGX proposes to pay.

The price bid shall be two minimum bids above the closing price of the previous day, or two minimum bids above the current last transacted price, whichever is the highest.

If the securities are not obtained, the SGX will raise the bid by two minimum bids from time to time until the securities are bought or delivered to the SGX.