Singapore legislation
Clause 49
Clause 49
Issues of contract notes
(1)
A dealer shall, in respect of a transaction of sale or purchase of securities, forthwith give a contract note that complies with subsection (2) to —
where the transaction took place in the ordinary course of business at a securities exchange and the dealer entered into the transaction otherwise than as principal — the person for whom the dealer entered into the transaction;
where the transaction did not take place in the ordinary course of business at a securities exchange and the dealer entered into the transaction otherwise than as principal — the person for whom the dealer entered into the transaction and the person with whom the dealer entered into the transaction; and
where the transaction did not take place in the ordinary course of business at a securities exchange and the dealer entered into the transaction as principal — the person with whom the dealer entered into the transaction.
(2)
A contract note given by a dealer under subsection (1) shall include —
the name or style under which the dealer carries on his business as a dealer and the address of the principal place at which he so carries on business;
where the dealer is dealing as principal with a person who is not the holder of a dealer’s licence, a statement that he is so acting;
the name and address of the person to whom the dealer gives the contract note;
the day on which the transaction took place and, if the transaction did not take place in the ordinary course of business at a securities exchange, a statement to that effect;
the number, or amount and description, of the securities that are the subject of the contract;
the price per unit of the securities;
the amount of the consideration;
the rate and amount of commission (if any) charged;
the amounts of all stamp duties or other duties and taxes payable in connection with the contract; and
if an amount is to be added to or deducted from the settlement amount in respect of the right to a benefit purchased or sold together with the securities, the first-mentioned amount and the nature of the benefit.
(3)
A dealer shall not include in a contract note given under subsection (1), as the name of the person with or for whom he has entered into the transaction, a name that he knows, or could reasonably be expected to know, is not the name by which that person is ordinarily known.
(4)
A reference in this section to a dealer dealing, or entering into a transaction, as principal includes a reference to a person —
dealing or entering into a transaction on behalf of a person associated with him;
dealing in securities on behalf of a body corporate in which he has a controlling interest; or
where he carries on business as a dealer on behalf of a body corporate in which his interest and the interest of his directors together constitute a controlling interest.
(5)
For the purposes of this section —
a dealer who is a member of a securities exchange shall not be taken to have entered into a transaction as principal by reason only that the transaction was entered into with another dealer who is a member of a securities exchange; and
a transaction takes place in the ordinary course of business at a securities exchange if it takes place in prescribed circumstances or is a transaction that is a prescribed transaction for the purposes of this section.
(6)
Notwithstanding section 3, a person is not associated with another person for the purposes of this section by reason only that he is a director of a body corporate of which the other person is also a director, whether or not the body corporate carries on a business of dealing in securities.