Singapore legislation
Regulation 2
of Securities and Futures (Prescribed Debentures) Regulations 2018
Regulation 2
Prescribed debentures
Subregulation 1
For the purposes of paragraph (c) of the definition of “debenture” in section 2(1) of the Act, “debenture” includes an arrangement —
that is entered into on or after 8 October 2018;
under which —
a person (A) transfers legal title to any amount of any precious metal (called in this regulation the specified precious metal) to another person (B), for consideration given by B;
at a predetermined time or within a predetermined period after the arrangement is entered into —
B is required to transfer legal title to the same amount of the specified precious metal to A, for a predetermined consideration given by A; or
B may exercise an option to require A to acquire the legal title to the same amount of the specified precious metal from B for a predetermined consideration given by A, whether or not B may only exercise the option on the fulfilment of one or more conditions; and
the predetermined consideration to be given by A under —
sub‑paragraph (ii)(A); or (B)sub‑paragraph (ii)(B) upon B’s exercise of the option mentioned in that provision,is greater than the value of consideration given by B under sub‑paragraph (i); and
that is neither entered into in the ordinary course of B’s business, nor solely incidental to that business.
Subregulation 2
In this regulation —
Definition
“precious metal” means gold, silver or platinum;
Definition
“predetermined consideration” means —
a consideration; or (b)a consideration that is determined using a formula,that is fixed as at the time the arrangement mentioned in paragraph (1) is entered into.