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Changes to price stabilisation exemption regime effective from 2 August 2010
Practical Law UK Legal Update 1-503-4382 (Approx. 2 pages)
Changes to price stabilisation exemption regime effective from 2 August 2010
by Allen & Gledhill LLP
| Published on 01 Oct 2010 • Singapore |
This article is part of the PLC Global Finance September 2010 e-mail update for Singapore.
Speedread
On 2 August 2010, amendments were made to the Exemption Regulations to introduce changes to the price stabilisation exemption regime. This article briefly summarises the amendments and what they mean.
Price stabilisation of securities that are listed or to be listed on Singapore Exchange Securities Trading Limited (the SGX-ST) may contravene the false trading, securities market manipulation and insider trading prohibitions set out in the Securities and Futures Act. However, the Securities and Futures (Market Conduct) (Exemptions) Regulations 2006 (the Exemption Regulations) set out omnibus exemptions from such prohibitions for stabilising action taken in respect of these listed securities (the price stabilisation exemption regime).
Changes to price stabilisation exemption regime
On 2 August 2010, amendments were made to the Exemption Regulations to introduce the following changes to the price stabilisation exemption regime:
- Extending the scope of the Exemption Regulations to stabilising action undertaken in respect of new securities issued in a follow-on offering.
- Allowing stabilising action for securities other than bonds that are not undertaken on the SGX-ST, or an overseas securities exchange, subject to compliance with the conditions stipulated in the Exemption Regulations.
- Including commission, brokerage, transaction fee and levy in computing the offer price of securities for the purposes of the Exemption Regulations (for example; in setting the price limits at which stabilising action may be taken).
Amending the definition of "offer document" in the Exemption Regulations to clarify that stabilising action undertaken in respect of units of a registered business trust and a collective investment scheme falls within the scope of the Exemption Regulations, subject to compliance with the conditions in the Exemption Regulations.