Clause 10

by deleting the words “the prescribed conditions” in subsection (1)(a) and (aa) and substituting in each case the words “such conditions as may be prescribed by regulations”;

by inserting, immediately after paragraph (aa) of subsection (1), the following paragraph:“(ab)subject to subsection (2B) and such conditions as may be prescribed by regulations, any amount payable from any Islamic debt securities which are qualifying debt securities, and issued during the period from 1st January 2005 to 31st December 2008, to any person —

who is not resident in Singapore and who does not have any permanent establishment in Singapore; and

who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that person to acquire the qualifying debt securities are not obtained from the operation;”;

by deleting the words “issued share capital” in subsection (1)(e) and substituting the words “total number of issued shares”;

by deleting the word “and” at the end of subsection (1)(zd);

by inserting, immediately after the words “Securities and Futures Act (Cap. 289)” in subsection (1)(ze)(v), the words “and offered to the public for subscription,”;

by deleting the full-stop at the end of paragraph (ze) of subsection (1) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs:“(zf)any amount payable from Islamic debt securities on or after 1st January 2005 to any individual, except where such amount is derived by the individual through a partnership in Singapore or from the carrying on of a trade, business or profession; and

by inserting, immediately after subsection (2A), the following subsection:“(2B) Subsection (1)(ab) shall not, unless otherwise approved by the Minister or such person as he may appoint, apply to any amount payable from any Islamic debt securities which are qualifying debt securities where 50% or more of the issue of those securities is beneficially held or funded, directly or indirectly, at any time during the life of the issue by related parties of the issuer of those securities and where the amount is payable to —

any related party of the issuer of those securities; or

any other person where the funds used by such person to acquire those securities are obtained, directly or indirectly, from any related party of the issuer of those securities.”;

by inserting, immediately after the definition of “financial sector incentive (bond market) company” in subsection (16), the following definition:“ “Islamic debt securities” has the same meaning as in section 43N(4);”;

by deleting the comma at the end of paragraph (b)(iii) of the definition of “qualifying debt securities” in subsection (16) and substituting a semi-colon; and

by deleting the words from the word “but” in the 24th line to the word “securities;” in the last line of the definition of “qualifying debt securities” in subsection (16) and substituting the following words:“(c)Islamic debt securities which are arranged in accordance with regulations made for this purpose —

by any financial institution in Singapore and issued during the period from 1st January 2005 to 31st December 2008; or (ii)by any financial sector incentive (bond market) company and issued during the period from 1st January 2005 to 31st December 2008,but, unless otherwise approved by the Minister or such person as he may appoint, excludes any debt securities issued on or after 10th May 1999 and any Islamic debt securities issued on or after 1st January 2005 which, during its primary launch —