SINGAPORE Law and Practice Contributed by: Lee Xin Mei, Cheryl Tan, Eugene Lee and Benjamin Liew, Rajah & Tann Singapore LLP
ST (the “Listing Manual”) and the eligibility to list letter issued by the SGX-ST. Under Rule 323 of the Listing Manual, a debt issuer must immediately disclose to the SGX-ST via SGXNet any information which may have a material effect on the price or value of its debt securities or on an investor’s decision whether to trade in such debt securities. Under Rule 324 of the Listing Manual, a debt issuer must also immediately announce the fol - lowing: • the redemption or cancellation of debt securi - ties when every 5% of the total principal amount of debt securities is redeemed or cancelled; • the details of any interest payments to be made (except for fixed-rate debt securities offered only to specified investors and traded in a minimum board lot size of SGD200,000); and/or • any appointment of a replacement trustee. There are generally no periodic reporting require - ments imposed on issuers of wholesale debt under the rules of the SGX-ST or under Singa - pore law. The frequency of financing reporting to noteholders would be governed by the contrac - tual provisions of the relevant trust deed. Under Chapter 14 of the Listing Manual, the SGX-ST can initiate disciplinary proceedings against issuers for the contravention of the List - ing Manual and upon conclusion of the hear - ing, impose sanctions against an issuer, which include:
• requiring the issuer to perform remedial action to rectify the consequences of contra - ventions; • issuing an order for the denial of facilities of the market, prohibiting an issuer from access - ing the facilities of the market for a specified period; • imposing fines on the issuer payable to the SGX-ST of up to SGD250,000 per contraven - tion, subject to a maximum of SGD1 million per hearing for multiple charges, which are to be paid by way of instalments which shall not exceed 12 months from the date of the imposition of the fine; • issuing an order for the suspension of the trading of an issuer’s securities for a specified period; and • issuing an order for the removal of an issuer from the Official List. Section 25 of the SFA also grants power to the court to order observance or enforcement of the rules in the Listing Manual. Further, it is an offence under Section 203(2) of the SFA for companies to intentionally, recklessly or negligently fail to notify the SGX-ST of such information as is required to be disclosed by the SGX-ST under the Listing Manual or other requirement of the SGX-ST. A person found to have contravened Section 203(2) of the SFA shall be liable on conviction to a fine not exceeding SGD250,000 or to imprisonment for a term not exceeding seven years or to both. 4.5 Activities of Rating Agencies Credit rating agencies in Singapore who pro - vide credit rating services (“CR services”) are regulated as capital markets services (CMS) licence holders. As with all other CMS licensees, licensed credit rating agencies in Singapore are
• issuing a private warning; • issuing a public reprimand;
363 CHAMBERS.COM
Powered by FlippingBook