Clause 11

accepts in the course of its business book-entry MAS securities by way of a custodial service for its customers; and

maintains accounts in the names of its customers reflecting ownership or interest in such book‑entry MAS securities;“depositor” means any person in whose name an account is established and maintained on the records of the Authority;“pledge” includes a pledge of, or any security interest in, book-entry MAS securities —

as collateral for loans or advances; or

to secure the performance of an obligation;“security interest” means an interest, not being an interest arising from a trust, in property which secures the payment of a debt or performance of an obligation.Issue of book-entry MAS securities30F.—

The Authority may —

issue book-entry MAS securities upon such terms as may be prescribed by means of entries on its records which include the name of the depositor and the amount and description of the securities;

maintain accounts of book-entry MAS securities —

for any depositor on such terms and conditions as may be specified by the Authority for such securities the depositor holds for its own account and, where the depositor is a depositary institution, for the account of its customers;

for the Government; and

for the Authority; and

otherwise service and maintain book-entry MAS securities.(2) The Authority may take all action necessary in respect of book-entry MAS securities to enable the Authority to perform its obligations as depositary with respect to such securities.Transfers and pledges effected by Authority under book‑entry clearing system30G.—

A transfer or a pledge of book-entry MAS securities to the Authority or to any transferee or pledgee eligible to maintain an appropriate account in its name with the Authority shall be effected, notwithstanding any written law to the contrary, by the Authority making an appropriate entry in its records of the securities transferred or pledged.(2) The making of an entry in the records of the Authority under subsection (1) shall —

have the effect of delivery of the book-entry MAS securities as if the securities had been issued in the form of an engraved or printed certificate;

have the effect of a taking of delivery by the transferee or pledgee;

constitute the transferee or pledgee a holder; and

in the case of a pledge, have the effect of vesting a security interest in favour of the pledgee.(3) A transfer or pledge of any book-entry MAS securities effected in accordance with this section shall have priority over any transfer or pledge involving, or any interest in, the securities effected or created in any other manner before, on or after the date of the transfer or pledge in accordance with this section.Transfers and pledges effected by other means30H.—

Notwithstanding section 30G, a transfer or pledge of book-entry MAS securities, or any interest therein, which is maintained by the Authority in an account may be effected by any means that would be effective to effect a transfer or pledge of book-entry MAS securities, or any interest therein, if the securities were issued by the Authority in the form of engraved or printed certificates.(2) The Authority shall be deemed not to be —

a bailee for the purposes of notification of pledges of book-entry MAS securities not effected in accordance with section 30G; and

a person in possession of book-entry MAS securities for the purposes of acknowledgment of transfers of such securities not effected in accordance with section 30G.(3) Where book-entry MAS securities are recorded on the books of a depositary institution for account of the pledgor or transferor thereof and such securities are on deposit with the Authority in an account, that depositary institution shall, for the purposes of effecting delivery of the securities to a purchaser or pledgee, be deemed to be —

the bailee to which notification of the pledge of the securities may be given; or

the person in possession from which acknowledgment of the holding of the securities may be obtained.(4) The Authority shall not accept any notice or advice of a transfer or pledge of any book-entry MAS securities not effected in accordance with section 30G and any such notice or advice shall be void.(5) The Authority may continue to deal with its depositor in accordance with this Part notwithstanding any transfer or pledge not effected in accordance with section 30G.Authority to be discharged by action on instructions30I.—

The Authority shall not be liable for conversion or for participation in any breach of fiduciary duty where the Authority has, in respect of book-entry MAS securities maintained in accounts maintained by the Authority —

made entries regarding the securities; or

transferred or delivered the securities,according to the instructions of its depositor, notwithstanding that the depositor had no right to dispose of or take any other action in respect of the securities.(2) The Authority shall be fully discharged of its obligations under this Part by the transfer or delivery of book-entry MAS securities upon the instructions of its depositor.Confirmation of transaction30J.—

The Authority shall, following any transaction affecting book-entry MAS securities maintained for any depositor under this Part, issue to each depositor a confirmation thereof in the form of an advice (serially numbered or otherwise).(2) The advice referred to in subsection (1) shall specify the amount and description of the securities and any other pertinent transaction data.Payment of interest30K.—

Subject to subsection (2), the interest payable on any book-entry MAS securities issued under this Part, if any, shall be paid half-yearly at the office of the Authority as shall be prescribed in regulations made under section 30P relating to the issue of the securities.(2) Where any book-entry MAS securities that are redeemable at the election of the holder thereof at any time are redeemed before the date of maturity of the securities, a portion of the half-yearly interest payable on the securities (calculated on a pro-rata basis) shall be payable on such date as may be specified as the redemption date in the duly served notice of intention to redeem the securities.Redemption of book-entry MAS securities30L.—

Subject to section 30M, book-entry MAS securities shall be redeemable at par —

on such date as may be prescribed in regulations made under section 30P relating to the issue of such book‑entry MAS securities (referred to in this Part as the date of maturity); or

in the case of book-entry MAS securities that are redeemable at the election of the holder thereof at any time, on the earlier of the following dates:

the date of maturity;

such date as may be specified as the redemption date in any notice of intention to redeem that is duly served in the manner prescribed by regulations made under section 30P.(2) After the date of maturity of the book-entry MAS securities under subsection (1), all the interest on the principal sums payable on the securities shall cease and determine, whether or not payment of the principal sums has been demanded.(3) Redemption proceeds of book-entry MAS securities shall be disposed of in accordance with the instructions from the depositor for whose account the securities shall have been maintained by the Authority.Early redemption30M.—

The Authority may, from time to time, by public notice invite the public to apply to redeem any book-entry MAS securities specified in the public notice before the date of maturity of those securities.(2) The public notice referred to in subsection (1) may specify —

the terms and conditions relating to the early redemption of the book-entry MAS securities specified in the public notice, including the manner in which any offer for early redemption shall be made; and

such other information as the Authority may consider necessary.(3) The Authority may refuse any application to redeem any book-entry MAS securities before the date of maturity of those securities without assigning any reason.Invitation to take up book-entry MAS securities and refusal of application30N.—

The Authority may, from time to time, by public notice invite the public to apply to take up book-entry MAS securities issued under this Part.(2) The Authority may refuse any application to take up book-entry MAS securities issued under this Part without assigning any reason.Securities lending arrangements30O.—

The Authority may, from time to time, enter into securities lending arrangements by lending book-entry MAS securities issued under this Part to primary dealers.(2) Lending book-entry MAS securities shall include an arrangement under which book-entry MAS securities are sold and repurchased.Power of Authority to make regulations for this Part30P.—

The Authority may make regulations for the purposes of this Part, including regulations to prescribe anything which may be prescribed under this Part.(2) Without prejudice to the generality of subsection (1), regulations made under this section may prescribe —

the terms of issue of book-entry MAS securities;

the manner in which applications to take up book‑entry MAS securities shall be made; and

the manner in which book-entry MAS securities shall be issued.PART VBPRIMARY DEALERS FORSECURITIES ISSUED BY AUTHORITYAppointment as primary dealer30Q.—

The Authority may, on application, appoint as a primary dealer any financial institution which carries on or intends to carry on, or holds itself out as carrying on or willing to carry on, the business of either or both of the following:

applying to the Authority to purchase securities issued by the Authority on behalf of another person in pursuance of any public invitation under section 30N;

offering to redeem any securities issued by the Authority on behalf of another person in pursuance of any public invitation under section 30M or otherwise.(2) In determining whether to appoint a financial institution as a primary dealer, the Authority shall consider the following:

the financial standing of the financial institution;

the experience of that financial institution in carrying on the business referred to in subsection (1), and its ability to perform the duties which would be imposed on it by or under this Act; and

the public interest.(3) The Authority may, in any particular case, require a financial institution applying to be appointed as a primary dealer (referred to in this section as an applicant) to furnish such information or document as the Authority deems relevant to its consideration under subsection (2).(4) The Authority may refuse an application under subsection (1) if —

the applicant does not furnish the Authority with such information or document as is required under subsection (3);

in the opinion of the Authority, the applicant does not meet, or is unlikely to be able to continue to meet, such requirements as may be prescribed by regulations made under section 30W in relation to carrying on any business referred to in subsection (1); or

the applicant makes any statement, or furnishes any information or document, in relation to its application that is false or misleading in any material particular, or omits to state any matter or thing without which its application is false or misleading in a material particular.(5) Every appointment as a primary dealer under this section shall continue in force for such period as may be specified by the Authority, unless the appointment is earlier cancelled or suspended.(6) Any financial institution which, immediately before the date of commencement of section 11 of the Monetary Authority of Singapore (Amendment) Act 2013, was appointed as a primary dealer under section 29A of the Government Securities Act (Cap. 121A) shall, for so long as that appointment remains in force, be deemed —

to be appointed as a primary dealer under this section; and

to be subject, under section 30R, to the conditions and restrictions to which his appointment as a primary dealer under section 29A of the Government Securities Act is subject.(7) If a person who is not a primary dealer carries on, or holds himself out as carrying on or willing to carry on, any business referred to in subsection (1), the person shall be guilty of an offence and shall be liable on conviction —

in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part thereof during which the offence continues after conviction; or

in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.Conditions of appointment as primary dealer30R.—

The Authority may appoint any financial institution as a primary dealer subject to such conditions or restrictions as the Authority thinks fit.(2) Without prejudice to the generality of subsection (1), the Authority may impose such conditions or restrictions with respect to the type of services which may or may not be provided by the primary dealer as the Authority may consider appropriate.(3) Subject to subsections (4), (5) and (6), the Authority may at any time add to, vary or revoke any condition or restriction of the appointment of any financial institution as a primary dealer.(4) Before making any modification to the conditions or restrictions of the appointment of any financial institution as a primary dealer under this section, the Authority shall, unless the Authority in respect of any particular case considers that it is not practicable or desirable to do so, give notice to the financial institution concerned —

stating that the Authority proposes to make the modification in the manner specified in the notice;

stating the reasons why the Authority proposes to make the modification; and

specifying the time (being not less than 28 days after the date of service of the notice on the financial institution) within which written representations with respect to the proposed modification may be made.(5) Where the Authority receives any written representation under subsection (4)(c) —

the Authority shall consider the representation and may —

reject the representation; or

withdraw or amend the proposed modification in accordance with the representation or otherwise; and

in either case, the Authority shall thereupon issue a notice in writing to the primary dealer concerned requiring that effect be given, within a reasonable time, to the proposed modification specified in the notice or to such modification as may subsequently be amended by the Authority.(6) If no written representation is received by the Authority within the time specified under subsection (4)(c), or if any written representation made under that subsection is subsequently withdrawn, the modification shall take effect as specified in the notice given under that subsection.Directions to primary dealers30S.—

The Authority may give directions to be observed by any primary dealer or class of primary dealers —

to ensure the continuity or reliability of the provision of services by the primary dealer or class of primary dealers to its customers; or

in the public interest.(2) A direction under subsection (1) —

shall require the primary dealer or every primary dealer in that class of primary dealers concerned (according to the circumstances of the case) to do, or not to do, such things as are specified in the direction or are of a description as specified therein, including but not limited to the manner in which the primary dealer conducts the business referred to in section 30Q(1) with its customers;

shall take effect at such time, being the earliest practicable time, as is determined by or under that direction; and

may be varied or revoked at any time by the Authority.(3) Every primary dealer shall comply with every direction of the Authority given to the dealer under this section.(4) It shall not be necessary to publish any direction under subsection (1) in the Gazette.Cancellation, etc., of appointment as primary dealer30T.—

If the Authority is satisfied that —

a primary dealer is contravening, is likely to contravene or has contravened —

any provision of this Act applicable to the primary dealer; or

any condition or restriction of its appointment as a primary dealer;

a primary dealer has not complied with any direction issued by the Authority under section 30S;

a primary dealer has gone or is likely to go into compulsory or voluntary liquidation other than for the purpose of amalgamation or reconstruction;

a receiver, a receiver and manager or a person in an equivalent capacity has been appointed, whether in Singapore or elsewhere, in relation to or in respect of any property of the primary dealer;

a primary dealer has obtained his appointment as such by fraud or misrepresentation;

a primary dealer has failed to satisfy any of its obligations under or arising from this Act;

a primary dealer has been convicted, whether in Singapore or elsewhere, of an offence committed before, on or after the date of commencement of section 11 of the Monetary Authority of Singapore (Amendment) Act 2013, involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly;

a primary dealer is no longer in a position to effectively carry out its duties or responsibilities as a primary dealer under this Act or under any regulations made under section 30W; or

a primary dealer is carrying on its business referred to in section 30Q(l) in a manner that is likely to be detrimental to its clients or contrary to the public interest,the Authority may by order cancel the appointment as a primary dealer.(2) The Authority may, if it considers it desirable to do so, in lieu of an order cancelling the appointment as a primary dealer, by order do either or both of the following:

suspend the appointment for such period (not exceeding 6 months) as the Authority thinks fit;

reprimand the primary dealer in writing.(3) In the case of a failure by a primary dealer to comply with any direction issued by the Authority under section 30S, the Authority may, in addition to any order that may be made under subsection (2), order the primary dealer to pay to the Authority, for every day or part thereof of such failure, a financial penalty in accordance with such formula as the Minister may, by notification published in the Gazette, prescribe.(4) A financial penalty collected by the Authority under subsection (3) shall be paid into the Consolidated Fund.(5) The Authority shall not make any order under subsection (1), (2) or (3) against a primary dealer unless the Authority has given to the primary dealer an opportunity of being heard by a representative in writing, being a period of at least 21 days but not more than 28 days.(6) Where the Authority has made any order under subsection (1), (2) or (3) against any primary dealer, it shall serve on the primary dealer a notice of the order.(7) Subject to subsections (8) and (9), any order made by the Authority under subsection (1), (2) or (3) against any primary dealer shall not take effect until the expiration of 21 days after the Authority has served the notice of the order on the primary dealer.(8) Any order cancelling or suspending an appointment as a primary dealer shall not operate so as to —

prejudice the enforcement by any person of any right or claim against the financial institution formerly appointed as a primary dealer, or by the financial institution formerly so appointed of any right or claim against any person; or

affect the validity or enforceability of any agreement, transaction or arrangement in respect of any securities issued by the Authority entered into (whenever) by the primary dealer.(9) An order of reprimand under subsection (2) shall take effect on the date it is served on the primary dealer concerned.(10) The Authority may recover on behalf of the Government any financial penalty ordered under subsection (3) as though the financial penalty were a civil debt due to the Authority.Appeal to Minister30U.—

Any primary dealer who is aggrieved by —

any notice of a condition or restriction of the appointment of any financial institution as a primary dealer under section 30R;

any direction given by the Authority under section 30S or variation of any such direction; or

any order of the Authority under section 30T(1), (2) or (3), except an order of reprimand,may, within 14 days after the receipt by the primary dealer of the notice of the condition or restriction, the direction (or variation thereof) or the order, as the case may be, appeal to the Minister whose decision shall be final.(2) Where an appeal is lodged under this section —

the order under section 30T cancelling the appointment as a primary dealer shall not take effect unless the order is confirmed by the Minister or the appeal is for any reason dismissed by the Minister or withdrawn; and

every other notice, direction (or variation thereof) or order appealed against shall take effect and be complied with until the determination of the appeal.(3) Subject to subsection (4), the Minister may determine an appeal under this section by confirming, varying or reversing the notice, direction (or variation thereof) or order of the Authority that is appealed against.(4) If the Minister is satisfied that an appeal by a primary dealer is instituted or pursued without reasonable ground, the Minister may, without calling for a reply from the Authority, but after giving the primary dealer an opportunity to be heard, determine the appeal by confirming the notice, direction (or variation thereof) or order of the Authority that is appealed against.Inspection of books30V.—

The Authority may from time to time inspect, under conditions of secrecy, the books of a primary dealer relating to its business referred to in section 30Q(1) for the purposes of ensuring that —

any condition or restriction imposed by the Authority under section 30R on the primary dealer is complied with;

any direction given by the Authority under section 30S to the primary dealer is complied with; or

the primary dealer has satisfied or satisfies any of its obligations under or arising from this Part.(2) For the purposes of an inspection under this section —

a primary dealer, and any person who is in possession of the books of the primary dealer relating to its business referred to in section 30Q(1), shall produce such books (and afford the Authority access thereto) and provide such information and facilities as may be required by the Authority to conduct the inspection;

the primary dealer shall procure that any such person in paragraph (a) who is in possession of the primary dealer’s books produce the books to the Authority and give such information or facilities as may be required by the Authority; and

the Authority may —

make copies of, or take possession of, any of such books; and

retain possession of any of such books for so long as is necessary for the purposes of exercising a power conferred by this section (except subsection (4)).(3) No person shall be entitled, as against the Authority, to claim a lien on any of the books, but such a lien is not otherwise prejudiced.(4) While the books of a primary dealer are in the possession of the Authority, the Authority —

shall permit any other person to inspect at all reasonable times such (if any) of the books as that other person would be entitled to inspect if the books were not in the possession of the Authority; and

may permit any other person to inspect any of the books.(5) The Authority may require a person who produced any book to the Authority to explain, to the best of his knowledge and belief, any matter about the compilation of the book or to which the book relates.(6) Any person who fails, without reasonable excuse, to comply with subsection (2) or a requirement of the Authority under subsection (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction.(7) In this section, “books” includes any record, register, document or other record of information, and any account or accounting record, however compiled, recorded or stored, whether in written or printed form or on microfilm or in any electronic form or otherwise.Power of Authority to make regulations for this Part30W.—

The Authority may make regulations for the purposes of this Part, including regulations to prescribe anything which may be prescribed under this Part.(2) Without prejudice to the generality of subsection (1), regulations made under this section may —

prescribe the manner in which any application to be appointed as a primary dealer is to be made;

prescribe the duties and obligations of a primary dealer; and

provide that any contravention of any specified provision of the regulations shall be an offence punishable —

in the case of an individual, with a fine not exceeding $12,500 or with imprisonment for a term not exceeding 12 months or with both and, in the case of a continuing offence, with a further fine not exceeding $1,250 for every day or part thereof during which the offence continues after conviction; or

in any other case, with a fine not exceeding $25,000 and, in the case of a continuing offence, with a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.”.