Government Securities Regulations - Singapore Statutes Online

Government Securities Act

(Chapter 121A, Section 31)

Government Securities Regulations

Rg 1

G.N. No. S 184/1992

REVISED EDITION 2002

(31st January 2002)

[1st April 1992]

Citation

1. These Regulations may be cited as the Government Securities Regulations.

Definitions

2. In these Regulations, unless the context otherwise requires —

“application” means an application to purchase Government securities;

“approved” means approved by the Minister;

“auction day” means such date as specified in a public notice as the auction day of an issue of Government securities;

“maturity date” means such date on which any Government security is redeemable at par;

“owner”, in relation to stock, means an owner of stock or the owners of stock in joint account;

“primary dealer” means any financial institution specified in the First Schedule;

“public notice” means a public notice issued by the Authority under section 30 of the Act;

“yield” means the rate of return on any Government security computed on the basis of the price of the Government security, the total interest payments and the period commencing from the date of issue of the Government security to the date of maturity of the Government security.

Applications

3.—(1) Any person who intends to purchase Government securities in pursuance of a public notice may apply to purchase such Government securities on a competitive basis or on a non-competitive basis.

(2) An application shall be made on what is commonly known as the Internet using the electronic application service provided by the Authority; and for this purpose, the Authority may enter into agreements with users of the service and issue a user guide setting out the terms and manner of use of the service.

[S 7/2002 wef 04/01/2002]

(3) In the event of a malfunction or failure of the electronic application service, an application shall be made in written form and in accordance with the user guide.

[S 7/2002 wef 04/01/2002]

(4) A person who is unable to use the electronic application service to make an application for any reason other than a malfunction or failure of the electronic application service may make the application in the manner referred to in paragraph (3) if he pays the Authority an administrative fee of $10.30 for each such application.

[S 7/2002 wef 04/01/2002]

[S 357/2007 wef 04/07/2007]

(5) This regulation is subject to regulation 4.

[S 7/2002 wef 04/01/2002]

(6) All applications made in pursuance of a public notice shall not be for less than the minimum nominal amount of $1,000 and shall be made in multiples of $1,000.

(7) All applications made on a competitive basis in pursuance of a public notice shall be expressed as a yield of the Government securities not exceeding 2 decimal places.

Applications to be submitted through primary dealers

4.—(1) An application made in pursuance of a public notice by a person other than a primary dealer shall be submitted by the primary dealer on behalf of that person.

[S 7/2002 wef 04/01/2002]

(1A) An application by a primary dealer on its own behalf shall be kept distinct from an application made by the primary dealer on behalf of another person, and the applications shall be submitted separately to the Authority.

[S 7/2002 wef 04/01/2002]

(1B) Any application by a primary dealer on behalf of other persons must be kept distinct from each other and submitted separately to the Authority.

[S 7/2002 wef 04/01/2002]

(2) The primary dealer shall submit all applications received under paragraph (1) to the Authority not later than 12 noon of the auction day.

Authority to refuse applications after 12 noon

5. The Authority shall refuse to accept any application made in pursuance of a public notice that is received after 12 noon of the auction day or such extended time as the Authority may in any case allow.

[S 7/2002 wef 04/01/2002]

Issue on non-competitive basis

6. Subject to these Regulations, the Authority may allot Government securities to applications made on a non-competitive basis in priority to all applications made on a competitive basis and at the average yield expressed in the successful applications on a competitive basis.

Issue on competitive basis

7.—(1) Subject to these Regulations, the Authority may allot the balance of Government securities of any issue remaining after allotment under regulation 6 to successful applications made on a competitive basis in relation to the issue.

(2) The lowest yield in ascending order expressed in the applications made on a competitive basis shall be used to determine the successful applications made on a competitive basis.

(3) Where the same yield has been offered in 2 or more applications made on a competitive basis and only part of the amount of Government securities applied for at such yield can be allotted, the amount of Government securities allotted at such yield among the applicants shall be in proportion to the amounts applied for by the respective applicants.

Inadequate applications

8. No allotment of any Government security shall be made on any application made in pursuance of a public notice for an amount of Government security which is less than the minimum nominal amount specified in regulation 3.

Full or partial allotments

9. The Authority may allot the full amount of Government securities applied for in an application or part thereof.

Interest

10.—(1) Subject to regulation 20, the interest rate of Government securities allotted under regulations 6 and 7 shall be determined in accordance with paragraph (2) or (3).

(2) The interest rate of Government securities in an issue of Government securities shall be as stated in the public notice for that issue.

(3) Where no interest rate is stated in the public notice for the issue of the Government securities, the interest rate of Government securities shall be the weighted averages of the yields expressed in the successful applications made on a competitive basis in pursuance of the public notice, rounded down to the nearest one-eight percent.

Notification of successful application

11.—(1) The Authority shall notify every successful applicant who is a primary dealer.

(2) Where a successful applicant is not a primary dealer, the Authority shall give to the primary dealer which had submitted the application made by the successful applicant a notification specifying the particulars of allotment of Government securities to the successful applicant.

(3) The primary dealer on receipt of a notice under paragraph (2) shall forthwith inform the successful applicant of the particulars specified in the notice.

Payment

12.—(1) Payment for allotted Government securities shall be made by way of a pre-authorised funds transfer to the Authority from the account of the applicant’s settlement bank specified in the application, in accordance with the terms of authorisation provided to the Authority by the settlement bank.

(2) Payment shall be made on such date as may be specified in the public notice relating to the issue of the Government securities.

[S 7/2002 wef 04/01/2002]

Interest payments

13.—(1) The interest payments on any issue of Government securities shall be made half-yearly on such dates as are specified in the public notice relating to that issue.

(2) Interest on any issue of Government securities shall cease and determine on such approved maturity date as may be specified in the public notice relating to that issue.

Interest payments for stock

14.—(1) Unless otherwise requested, interest on stock shall be paid by interest statements accompanied by a cheque made payable to the owner thereof and forwarded by post to the owner at the address given to the Authority by that owner.

(2) Unless otherwise requested, interest shall be paid to the owner.

(3) Upon a request in accordance with the Second Schedule being made by the owner of stock or, in the case of a joint account, by all the owners, interest may be paid into any bank account, in which case the interest statement shall be accompanied by a credit advice relating to such payment and forwarded to the person whose bank account the interest was paid into.

(4) The owner to whom an interest statement is to be forwarded shall forthwith notify the Authority of any change in the address given to the Authority by that person and request that interest statements be forwarded to the new address.

(5) Where any request referred to in paragraph (3) or (4) reaches the Authority less than 14 days before the next interest is due, the Authority may decline to act thereon until after the payment of that interest.

(6) Any owner who does not receive his interest statement on the dates specified in the public notice for the payment of interest shall forthwith notify the Authority.

Interest payments for bearer bonds

15.—(1) Interest coupons shall be attached to all bearer bonds.

(2) Any holder of a bearer bond may, on such dates for the payment of interest as are specified in the public notice relating to the issue of the bearer bond, present to the Authority or at any financial institution in Singapore appointed by the Authority for the purposes of this regulation such interest coupons for purposes of encashment.

Interest payments for book-entry Government securities

16.—(1) Interest on any book-entry Government security shall be credited into the appropriate account for book-entry Government securities maintained by the Authority for the owner of such security or for the depositary institution which holds the book-entry Government security for the account of the owner.

(2) Where interest on any book-entry Government security is credited into an account of book-entry Government securities maintained by the Authority for a depositary institution which holds the book-entry Government security for the account of the owner thereof, the depositary institution shall forthwith credit such interest into the appropriate account of the owner of the book-entry Government security maintained at that institution.

Redemption

17. The maturity date of any Government security shall be such approved maturity date as is specified in the public notice relating to the issue of such Government security.

Conditions of holding Government securities

18. No person or beneficial owner who is exempt from paying income tax in respect of interest on any Government securities, other than those Government securities where the interest is exempt from income tax, may hold such Government securities without the written permission of the Authority.

Transfers

19.—(1) Subject to paragraph (2), stock shall be transferable by way of an instrument of transfer signed by the owner thereof and the transferee which is registered with the Authority.

(2) No stock of less than the minimum nominal amount of $1,000 may be transferred under paragraph (1).

(3) Book-entry Government securities maintained in any account with the Authority may be transferred to another account maintained by the Authority through such means (including a computer-based communications system) as the Authority may prescribe from time to time.

Re-opened issues

20. After the allotment of Government securities in any issue of Government securities, the Authority may subsequently issue Government securities in excess of the amount as stated in the original public notice of the issue on the same terms and conditions as to redemption and interest as the issue.

Private placements

21.—(1) These Regulations shall not apply to any issue of Government securities which is not offered to the public for purchase by way of a public notice.

(2) The manner, terms and conditions which the Government securities referred to in paragraph (1) may be issued shall be as determined by the Minister.

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