Securities and Futures Act 2001 · 2020 Revised Edition · Part 7A · Short Selling
137ZH. Interpretation of this Part
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In this Part, unless the context otherwise requires —
“securities lending arrangement” means a written arrangement where a person (called in this Part the lender) who has an interest in specified capital markets products is to transfer title to some or all of the specified capital markets products to another person (called in this Part the borrower) for an agreed period of time, after which the borrower is to transfer title to those specified capital markets products back to the lender;
securities
“securities” means —(a)shares, units in a business trust or any instrument conferring or representing a legal or beneficial ownership interest in a corporation, partnership or limited liability partnership;(b)debentures; or(c)any other product or class of products as may be prescribed,but does not include —(d)any unit of a collective investment scheme;(e)any bill of exchange;(f)any certificate of deposit issued by a bank or finance company, whether situated in Singapore or elsewhere; or(g)such other product or class of products as may be prescribed;
“short position” means the amount by which the quantity, volume or value of any specified capital markets products in which a person has an interest is less than the quantity, volume or value of the specified capital markets products which the person is under an obligation to deliver, where the quantity, volume or value of any specified capital markets products is determined in accordance with the criteria, methods or formulae prescribed by regulations made under section 137ZM;
capital markets products
“capital markets products” means any securities, units in a collective investment scheme, derivatives contracts, spot foreign exchange contracts for the purposes of leveraged foreign exchange trading, and such other products as the Authority may prescribe as capital markets products;
“short sell order” means an order to sell any specified capital markets products where the person who makes the order does not, at the time of the order, have an interest in the specified capital markets products;
“specified capital markets products” means any capital markets products listed or to be listed on an approved exchange that is, or that belongs to a class of capital markets products that is, prescribed by regulations made under section 137ZM.
approved exchange
“approved exchange” means a corporation that is approved by the Authority under section 9(1)(a) as an approved exchange;
In this Part and subject to subsection (3), a person has an interest in specified capital markets products if —
the person is the legal owner of the specified capital markets products;
the person is the beneficial owner of the specified capital markets products;
the person has authority (whether formal or informal, or express or implied) to dispose of the specified capital markets products;
the person —
has purchased or entered into an unconditional agreement or arrangement to purchase the specified capital markets products, but has not received delivery of the specified capital markets products;
has tendered the specified capital markets products for conversion or exchange, or has issued irrevocable instructions to convert or exchange capital markets products into the specified capital markets products, but has not received delivery of the specified capital markets products;
has exercised an option to subscribe for the specified capital markets products, but has not received delivery of the specified capital markets products; or
has exercised a right under a warrant to subscribe for the specified capital markets products, but has not received delivery of the specified capital markets products,and, under the agreement, arrangement, conversion, exchange, option or right (referred to in sub‑paragraphs (i) to (iv)), the person is to receive delivery of the specified capital markets products before the time that the person is to deliver the specified capital markets products;
the person —
is the lender in a securities lending arrangement;
has transferred title to the specified capital markets products to the borrower in the securities lending arrangement; and
is to receive title from the borrower in the securities lending arrangement to the specified capital markets products before the time that the person is to deliver the specified capital markets products; or
the person is a party to an agreement or arrangement that is, or that belongs to a class of agreements or arrangements that is, prescribed by regulations made under section 137ZM for the purposes of this paragraph.
Despite subsection (2), a person does not have an interest in specified capital markets products if —
the person is a borrower under a securities lending arrangement and has obtained title to the specified capital markets products pursuant to the securities lending arrangement;
the person is the legal owner or the beneficial owner of the specified capital markets products but has sold, or entered into an unconditional agreement or arrangement to sell, the specified capital markets products; or
the person is the legal owner or the beneficial owner of the specified capital markets products, or has authority to dispose of the specified capital markets products, but is a party to an agreement or arrangement that is, or that belongs to a class of agreements or arrangements that is, prescribed by regulations made under section 137ZM for the purposes of this paragraph.
In the definition of “short position” in subsection (1), the following are the specified capital markets products which a person is under an obligation to deliver:
the specified capital markets products in respect of which the person has an obligation to deliver under a sale agreement, but has not delivered;
the specified capital markets products in respect of which the person has an obligation to vest title in a lender under a securities lending arrangement, but has not vested title;
the specified capital markets products in respect of which the person has any other non‑contingent legal obligation to deliver, but has not delivered.