Singapore legislation

Clause 30

Limit on equity investments

(1)

The Authority may by regulations impose such requirements for the purposes of limiting the amount of equity investment in a single company which the designated financial holding company or class of designated financial holding companies may acquire or hold.

(2)

This section shall not apply to —

(a)

any interest held by way of security for the purposes of a transaction entered into in the ordinary course of the business of the designated financial holding company;

(b)

any shareholding or interest acquired or held by the designated financial holding company in the course of satisfaction of debts due to it which is disposed of at the earliest suitable opportunity; or

(c)

any major stake approved, or deemed to have been approved, by the Authority under section 31.

(3)

Without prejudice to the generality of subsection (1), the Authority may, by regulations —

(a)

provide for the manner of valuation of investments for the purposes of compliance with this section; and

(b)

exclude the operation of this section in respect of any investment or class of investments which may be held by any designated financial holding company, subject to such conditions as may be prescribed.

(4)

Any designated financial holding company which contravenes any regulation made under this section or fails to comply with any condition imposed or prescribed thereunder shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.

(5)

In this section, “equity investment” means —

(a)

any beneficial interest in the share capital of a company; and (b)such other investment, interest or right as may be prescribed.

Read in full context — Financial Holding Companies Bill →