Regulation 12

for the purposes of effecting payment resulting from the carrying on of any business by the merchant bank in Singapore under section 55V(1)(a), (b) or (c) of the Act —

the merchant bank undertakes to purchase an asset from a customer (merchant bank purchase undertaking);

the customer undertakes to purchase an asset from the merchant bank (customer purchase undertaking);

the merchant bank undertakes to sell an asset to a customer (merchant bank sale undertaking); or

the customer undertakes to sell an asset to the merchant bank (customer sale undertaking),for an amount of money determined at the time the undertaking is given by the merchant bank or the customer, as the case may be (the agreed price);

where the merchant bank purchase undertaking is exercised by the customer, or the customer sale undertaking is exercised by the merchant bank, the merchant bank purchases the asset from the customer at the agreed price in circumstances where the asset is existing at the time of the purchase, and immediately sells the asset to a third party at spot price;

where the customer purchase undertaking is exercised by the merchant bank, or the merchant bank sale undertaking is exercised by the customer, the merchant bank purchases the asset from a third party at spot price in circumstances where the asset is existing at the time of the purchase, and immediately sells the asset to the customer at the agreed price;

the merchant bank does not take physical delivery of the asset;

the merchant bank does not derive any gain or suffer any loss from any movement in the market value of the asset other than the difference between the spot price and the agreed price.

intention to commence the business mentioned in paragraph (1); or

commencement of the business within 14 days after the date of its commencement.