Banking Act 1970 - Singapore Statutes Online

Limit on equity investments

31.—(1) A bank incorporated in Singapore must not acquire or hold any equity investment in a single company, the value of which exceeds in the aggregate 2% of the capital funds of the bank or such other percentage as the Authority may prescribe.

[1/2020]

(1A) A bank incorporated outside Singapore must not, through a branch or office located within Singapore, acquire or hold any equity investment in a single company, the value of which exceeds in the aggregate —

(a)	any limit prescribed by the Authority; or
(b)	any limit specified by the Authority in a particular case by written notice to that branch or office. [1/2020]

(2) This section does not apply to —

(a)	any interest held by way of security for the purposes of a transaction entered into in the ordinary course of the business of the bank in Singapore;
(b)	any shareholding or interest acquired or held by a bank in Singapore in the course of satisfaction of debts due to it which is disposed of at the earliest suitable opportunity; or
(c)	any major stake approved under section 32.

(3) The Authority may, by regulations —

(a)	provide for the manner of valuation of investments for the purposes of compliance with this section; and
(b)	exclude the operation of this section in respect of any investment or class of investments which may be held by any bank, subject to such conditions as may be prescribed.

(4) Any bank which contravenes this section or fails to comply with any condition imposed or prescribed under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.

(5) In this section, “equity investment” means any beneficial interest in the share capital of a company, and such other investment, interest or right as may be prescribed.

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