Singapore legislation
Clause 21
Clause 21
Repeal and re-enactment of section 120
Section 120 of the principal Act is repealed and the following section substituted therefor:“Disclosure of certain interests in respect of underwriting agreement120.—
Where —
securities have been offered for subscription or purchase; and
the holder of a capital markets services licence has subscribed for or purchased, or is or will or may be required to subscribe for or purchase, any of those securities under an underwriting or sub-underwriting agreement by reason that some or all of the securities have not been subscribed for or purchased,the holder shall not, during the period of 90 days after the close of the offer referred to in paragraph (a) —
make an offer to sell those securities otherwise than in the ordinary course of trading on a securities exchange or recognised market operator; or
make a recommendation, whether orally or in writing and whether expressly or by implication, with respect to those securities,unless the offer or recommendation contains or is accompanied by a statement to the effect that the offer or recommendation relates to securities that the holder has acquired, or is or will or may be required to acquire, under an underwriting or sub-underwriting agreement by reason that some or all of the securities have not been subscribed for or purchased.(2) For the purpose of subsection (1), any reference to an offer shall be construed as including a reference to a statement, however expressed, that expressly or impliedly invites a person to whom it is made to offer to acquire securities.(3) Where the holder of a capital markets services licence sends to any person a written offer, written recommendation or written statement to which subsection (1) applies, the holder shall retain a copy of the written offer, recommendation or statement for a period of 6 years after the day the written offer, recommendation or statement is made.(4) The Authority may, if it is in the public interest, exempt any person or class of persons, or any securities or class of securities, from the application of this section.(5) The holder of a capital markets services licence which contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.”.