Government Securities (Debt Market and Investment) Regulations 2023

An application pursuant to a public notice has to be made as follows:

Each application by an alternative method mentioned in paragraph (1)(b) must be accompanied by an administrative fee of $10.70 (inclusive of the goods and services tax chargeable under the Goods and Services Tax Act 1993).

In the event of a malfunction or failure, or an imminent malfunction or failure, of the relevant electronic service in paragraph (1)(a), an application pursuant to a public notice has to be made in writing and according to the user guide for the relevant electronic service.

An application pursuant to a public notice has to be made —

However, a primary dealer is not eligible to apply for any non‑transferable Government securities pursuant to a public notice except as an agent on behalf of another who is not a primary dealer.

Where a primary dealer makes applications under paragraph (1)(a) on behalf of 2 or more other persons, the applications must be kept distinct from each other and submitted separately to the Authority.

Where a primary dealer makes both an application to purchase transferable Government securities or Treasury Bills under paragraph (1)(a) on behalf of another person and an application under paragraph (1)(b) to purchase those transferable Government securities or Treasury Bills for itself, the applications must be kept distinct and submitted separately to the Authority.

A person who intends to purchase transferable Government securities or Treasury Bills pursuant to a public notice may make an application to purchase those transferable Government securities or Treasury Bills on a competitive basis or on a non‑competitive basis in accordance with the terms of the issue of those transferable Government securities or Treasury Bills.

All applications pursuant to a public notice made on a competitive basis —

A person who intends to purchase non‑transferable Government securities pursuant to a public notice may make an application to purchase those non‑transferable Government securities in accordance with the terms of the issue.

All applications to purchase non‑transferable Government securities pursuant to a public notice —

All applications pursuant to a public notice must be made and received by the Authority not later than the time specified in that public notice (called in this regulation the cut‑off time) on the allotment day or auction day specified in the public notice.

The Authority must refuse to accept any application pursuant to a public notice that is received by the Authority after the cut‑off time.

The Authority may, in the event of —

Where the Authority has issued a public notice, it may at any time during the period starting on the date of issue of the public notice and ending at the cut‑off time of the auction day or allotment day specified in the public notice, vary the amount of Government securities or Treasury Bills specified in the public notice to be made available for allotment, in which event the Authority must, as soon as possible, publish a notice to the general public of the variation in a manner as will secure adequate publicity for the fact of the variation.

To avoid doubt, a variation under paragraph (1) does not affect the validity of any application to purchase Government securities or Treasury Bills made pursuant to the public notice and before the variation.

The Authority may allot Government securities or Treasury Bills upon an application pursuant to a public notice —

The method of allotment of any Government security or Treasury Bill must be specified in the public notice for the issue of that Government security or Treasury Bill.

Subject to these Regulations, transferable Government securities or Treasury Bills that are to be allotted under a multiple pricing method must be allotted in accordance with paragraphs (2) to (9).

For every issue of transferable Government securities or Treasury Bills in a public notice, the transferable Government securities or Treasury Bills must be allotted to applications pursuant to the public notice made on a non‑competitive basis in priority to all applications pursuant to that public notice made on a competitive basis.

Where there are insufficient transferable Government securities or Treasury Bills in an issue to allot in full in accordance with paragraph (2), the transferable Government securities or Treasury Bills available for allotment have to be allotted to the applications made on a non‑competitive basis rateably in proportion to the amounts applied for by the respective applicants.

For any issue of transferable Government securities or Treasury Bills in a public notice, after allotment in accordance with paragraph (2) or (3), the balance of transferable Government securities or Treasury Bills must be allotted to applications pursuant to the public notice made on a competitive basis, in ascending order, starting from the application expressing the lowest bid yield to the application expressing the highest bid yield.

Where there are insufficient transferable Government securities or Treasury Bills in an issue to allot in full in accordance with paragraph (4), the transferable Government securities or Treasury Bills available must be allotted as follows:

The yield for each successful application made on a non‑competitive basis is equal to the weighted average of the bid yields in the successful applications made on a competitive basis.

The yield for each successful application made on a competitive basis is the bid yield in the application.

Where any application for Treasury Bills issued in a public notice may only be made on a competitive basis in accordance with the terms of the issue —

For the purpose of paragraph (8), the reference in paragraph (4) to the balance of Treasury Bills is a reference to the Treasury Bills to be issued as specified in the public notice.

Subject to these Regulations, transferable Government securities or Treasury Bills that are to be allotted under a uniform pricing method must be allotted in accordance with paragraphs (2) to (8).

For every issue of transferable Government securities or Treasury Bills in a public notice, the transferable Government securities or Treasury Bills must be allotted to applications pursuant to the public notice made on a non‑competitive basis in priority to all applications pursuant to that public notice made on a competitive basis.

Where there are insufficient transferable Government securities or Treasury Bills in an issue to allot in full in accordance with paragraph (2), the transferable Government securities or Treasury Bills available for allotment have to be allotted to the applications made on a non‑competitive basis rateably in proportion to the amounts applied for by the respective applicants.

For any issue of transferable Government securities or Treasury Bills in a public notice, after allotment in accordance with paragraph (2) or (3), the balance of transferable Government securities or Treasury Bills must be allotted to applications pursuant to the public notice made on a competitive basis, in ascending order, starting from the application expressing the lowest bid yield to the application expressing the highest bid yield.

Where there are insufficient transferable Government securities or Treasury Bills in an issue to allot in full in accordance with paragraph (4), the transferable Government securities or Treasury Bills available must be allotted as follows:

The yield for each successful application pursuant to a public notice, whether made on a competitive or non‑competitive basis, is the highest bid yield in any successful application pursuant to that public notice made on a competitive basis.

Where any application for Treasury Bills issued in a public notice may only be made on a competitive basis in accordance with the terms of the issue —

For the purpose of paragraph (7), the reference in paragraph (4) to the balance of Treasury Bills is a reference to the Treasury Bills to be issued as specified in the public notice.

Non-transferable Government securities must be allotted under a quantity ceiling method in accordance with paragraphs (2), (3) and (4).

Where the proposed value of an issue of non‑transferable Government securities is equal to or greater than the total value of all applications for that issue —

Where the proposed value of an issue is less than the total value of all applications for that issue, and the proposed value is insufficient to fulfil the first $500 in value of each applicant’s application, equal proportions must be randomly allotted among all outstanding applications.

Where the proposed value of an issue is less than the total value of all applications for that issue, and the proposed value is sufficient to fulfil the first $500 in value of each applicant’s application, equal proportions must be allotted among the first $500 in value of each application, and where the balance of the proposed value —

For the purpose of paragraphs (2), (3) and (4), where an applicant has made more than one application to purchase non‑transferable Government securities pursuant to an issue, the value of each of the application must be aggregated in determining the value of the applicant’s application in relation to that issue.

In this regulation —

The Authority must notify every successful applicant who is a primary dealer.

Where a successful applicant is not a primary dealer, the Authority must give the primary dealer which had submitted the application on behalf of the successful applicant, a notification specifying the particulars of allotment of Government securities or Treasury Bills to the successful applicant.

On receipt of a notification under paragraph (2), the primary dealer concerned must without delay inform the successful applicant of the particulars specified in the notification.

Subject to regulation 30, the interest rate of Government securities allotted —

The interest rate of any Government security in an issue of Government securities must be as stated in the public notice for that issue.

Where no interest rate is stated in the public notice for an issue of Government securities, the interest rate of any Government security in that issue of Government securities is —

Interest on any book-entry Government security must be credited into the appropriate account for book‑entry Government securities maintained by the Authority —

Where interest on any book-entry Government security is credited into an account of book‑entry Government securities maintained by the Authority for a depositary institution which holds the book‑entry Government security for the account of the owner thereof, the depositary institution must immediately credit the interest into the appropriate account of the owner of the book‑entry Government security maintained at that institution.

The maturity date of any Government security or Treasury Bill is the approved maturity date as is specified in the public notice relating to the issue of such Government security or Treasury Bill as the date on which the Government security or Treasury Bill is redeemable at par.

In this regulation, “approved” means approved by the Minister.

Any payment for Government securities or Treasury Bills allotted under Part 3 or 4 has to be made by way of a pre‑authorised funds transfer to the Authority from the account of the applicant’s settlement bank specified in the application, in accordance with the terms of authorisation provided to the Authority by the settlement bank.

The payment mentioned in paragraph (1) must be made on the date specified in the public notice relating to the relevant issue of the Government securities or Treasury Bills.

These Regulations do not apply to any issue of Government securities which is not offered to the public for purchase by way of a public notice.

The manner, terms and conditions which the Government securities mentioned in paragraph (1) may be issued must be as determined by the Minister.

Despite these Regulations, the Government Securities Regulations as in force immediately before 15 March 2023 continue to apply to any stock or bearer bonds issued in accordance with those Regulations before that date and not redeemed immediately before that date.

Regulations 25 and 29 apply to all Treasury Bills that were issued before 15 March 2023.