Government Securities Regulations - Singapore Statutes Online

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;

“bid yield” means the yield expressed in an application;

[S 116/2003 wef 10/03/2003]

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

“multiple pricing format” means the manner of allotting Government securities set out in regulation 7;

[S 116/2003 wef 10/03/2003]

“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;

“uniform pricing format” means the manner of allotting Government securities set out in regulation 7A;

[S 116/2003 wef 10/03/2003]

“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 bid yield 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]

Manner of allotment of Government securities

6.—(1) The Authority may allot Government securities under a multiple pricing format or a uniform pricing format as may be specified in the public notice for the issue of the Government securities.

(2) In respect of any issue of Government securities —

(a)

each primary dealer is limited to making, on its own behalf, one application on a non-competitive basis to purchase not more than 1% of the issue;

(b)

each person, other than a primary dealer, is limited to making one application on a non-competitive basis to purchase not more than —

(i)	$1 million in the case of securities having a maturity of one year or less; or
(ii)	$2 million in the case of securities having a maturity of more than one year;

(c)

not more than 40% of the issue shall be allocated by the Authority to applications made on a non-competitive basis; and

(d)

notwithstanding any other provision in these Regulations —

(i)	each primary dealer shall not be allotted more than 30% of the issue; and
(ii)	each person, other than a primary dealer, shall not be allotted more than 15% of the issue.

[S 116/2003 wef 10/03/2003]

Allotment under multiple pricing format

7.—(1) Subject to these Regulations, Government securities that are to be allotted under a multiple pricing format shall be allotted in accordance with paragraphs (2) to (8).

(2) Government securities shall be allotted to applications made on a non-competitive basis in priority to all applications made on a competitive basis.

(3) Where there are insufficient Government securities allocated in respect of the issue to allot such securities in full in accordance with paragraph (2) to the applications made on a non-competitive basis, the amount of Government securities available for allotment shall be allotted to the applications rateably in proportion to the amounts applied for by the respective applicants.

(4) The balance of Government securities of the issue remaining after allotment under paragraph (2) or (3), as the case may be, shall be allotted to applications made on a competitive basis in ascending order commencing from the application expressing the lowest bid yield to the application expressing the highest bid yield.

(5) Subject to paragraph (6), where there are insufficient Government securities remaining in respect of the issue to allot such securities in full in accordance with paragraph (4), to any application made on a competitive basis, the amount of Government securities available for allotment shall be allotted to the application.

(6) Where 2 or more applications made on a competitive basis express the same bid yield, and there are insufficient Government securities remaining in respect of the issue to allot such securities in full in accordance with paragraph (4), to the applications, the amount of Government securities available for allotment shall be allotted to the applications rateably in proportion to the amounts applied for by the respective applicants.

(7) The yield for each successful application made on a non-competitive basis shall be that equal to the weighted average of the bid yields in the successful applications made on a competitive basis.

(8) The yield for each successful application made on a competitive basis shall be the bid yield in the application.

[S 116/2003 wef 10/03/2003]

Allotment under uniform pricing format

7A.—(1) Subject to these Regulations, Government securities that are to be allotted under a uniform pricing format shall be allotted in accordance with paragraphs (2) to (7).

(2) Government securities shall be allotted to applications made on a non-competitive basis in priority to all applications made on a competitive basis.

(3) Where there are insufficient Government securities allocated in respect of the issue to allot such securities in full in accordance with paragraph (2) to the applications made on a non-competitive basis, the amount of Government securities available for allotment shall be allotted to the applications rateably in proportion to the amounts applied for by the respective applicants.

(4) The balance of Government securities of the issue remaining after allotment under paragraph (2) or (3), as the case may be, shall be allotted to applications made on a competitive basis in ascending order commencing from the application expressing the lowest bid yield to the application expressing the highest bid yield.

(5) Subject to paragraph (6), where there are insufficient Government securities remaining in respect of the issue to allot such securities in full in accordance with paragraph (4), to any application made on a competitive basis, the amount of Government securities available for allotment shall be allotted to the application.

(6) Where 2 or more applications made on a competitive basis express the same bid yield, and there are insufficient Government securities remaining in respect of the issue to allot such securities in full in accordance with paragraph (4), to the applications, the amount of Government securities available for allotment shall be allotted to the applications rateably in proportion to the amounts applied for by the respective applicants.

(7) The yield for each successful application, whether made on a competitive or non-competitive basis, shall be that equal to the highest bid yield in any successful application made on a competitive basis.

[S 116/2003 wef 10/03/2003]

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.

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