Singapore legislation

Clause 219

Prohibited conduct by other persons in possession of inside information

(1)

Subject to this Division, where —

(a)

a person who is not a connected person referred to in section 218 (referred to in this section as the insider) possesses information that is not generally available but, if the information were generally available, a reasonable person would expect it to have a material effect on the price or value of securities; and

(b)

the insider knows that —

(i)

the information is not generally available; and

(ii)

if it were generally available, it might have a material effect on the price or value of those securities,subsections (2) and (3) shall apply.

(2)

The insider must not (whether as principal or agent) —

(a)

subscribe for, purchase or sell, or enter into an agreement to subscribe for, purchase or sell, any such securities; or

(b)

procure another person to subscribe for, purchase or sell, or to enter into an agreement to subscribe for, purchase or sell, any such securities.

(3)

Where trading in the securities referred to in subsection (1) is permitted on the securities market of a securities exchange or futures market of a futures exchange, the insider must not, directly or indirectly, communicate the information, or cause the information to be communicated, to another person if the insider knows, or ought reasonably to know, that the other person would or would be likely to —

(a)

subscribe for, purchase or sell, or enter into an agreement to subscribe for, purchase or sell, any such securities; or

(b)

procure a third person to subscribe for, purchase or sell, or to enter into an agreement to subscribe for, purchase or sell, any such securities.

Read in full context — Securities and Futures Bill →