Singapore legislation
Clause 2
Clause 2
Amendment of section 6
Section 6 of the Civil Law Act (referred to in this Act as the principal Act) is amended by deleting subsection (4) and substituting the following subsections:“(4) For the avoidance of doubt, this section shall not affect the validity or enforceability of any contract or agreement entered into by either or each party by way of business and the making or performance of which by any party constitutes an investment activity.(4A) For the purposes of subsection (4), “investment activity” means any of the following activities:
a transaction in relation to a contract or an option for the future delivery of any securities, commodity, currency or financial instrument, whether or not there is any intention of actual delivery of such securities, commodity, currency or instrument;
a transaction in relation to a contract or an option which is entered into with the intention of settlement of differences in the prices or values of any securities, commodity, currency or financial instrument, whether or not there is any intention of actual delivery of such securities, commodity, currency or instrument;
a transaction involving the exchange or grant of an option for the exchange of any securities, commodity, currency or financial instrument;
a transaction in securities, commodity, currency or financial instrument;
a transaction involving the grant of a right or an option relating to an obligation to pay interest or the exchange or grant of an option for the exchange of obligations to pay interest;
a transaction in relation to a contract or an option to pay the difference between a pre-agreed interest rate and the rate prevailing as at specified intervals;
a transaction in relation to any securities, futures contract or derivative which is listed or traded on any stock exchange, futures exchange or commodities exchange in any country outside Singapore;
a transaction in relation to any other derivative including but not limited to any swap, cap, collar, floor and any combination thereof; or
such other activity as the Minister may by notification prescribe.”.