Rulebooks: Contents

Rulebooks
Mainboard Rules
Definitions and Interpretation
Chapter 1 Introduction
Chapter 2 Equity Securities
Chapter 3 Debt Securities
Chapter 4 Investment Funds
Chapter 5 Structured Warrants
Chapter 6 Prospectus, Offering Memorandum and Introductory Document
Chapter 7 Continuing Obligations
Chapter 8 Changes in Capital
Chapter 9 Interested Person Transactions
Chapter 10 Acquisitions and Realisations
Chapter 11 Takeovers
Chapter 12 Circulars, Annual Reports and Electronic Communications
Chapter 13 Trading Halt, Suspension and Delisting
Chapter 14 Disciplinary and Appeals Procedures, and Enforcement Powers of the Exchange
Appendices
Practice Notes
Report of the Committee and Code of Corporate Governance
Catalist Rules
SGX-ST Rules
CDP Clearing Rules
CDP Settlement Rules
DVP Rules [Entire Rulebook has been deleted]
CDP Depository Rules
Futures Trading Rules
SGX-DC Clearing Rules
SIAC DT Arbitration Rules
SIAC DC Arbitration Rules
Archive
Rule Amendments

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  • Chapter 7 Continuing Obligations

    • Part I Scope of Chapter

      • 701

        This Chapter sets out continuing requirements which an issuer is required to observe once admitted to the Official List. Additional continuing requirements are set out in the following chapters:—

        Chapter 8 Changes in Capital
        Chapter 9 Interested Person Transactions
        Chapter 10 Acquisitions and Realisations
        Chapter 11 Takeovers
        Chapter 12 Circulars and Annual Reports

    • Part II Equity Securities — Immediate Announcements

      • 702

        An issuer must release all announcements via SGXNET, unless specified otherwise.

      • Disclosure of Material Information

        • 703

          (1) An issuer must announce any information known to the issuer concerning it or any of its subsidiaries or associated companies which:—
          (a) is necessary to avoid the establishment of a false market in the issuer's securities; or
          (b) would be likely to materially affect the price or value of its securities.
          (2) Rule 703(1) does not apply to information which it would be a breach of law to disclose.
          (3) Rule 703(1) does not apply to particular information while each of the following conditions applies.

          Condition 1: a reasonable person would not expect the information to be disclosed;

          Condition 2: the information is confidential; and

          Condition 3: one or more of the following applies:
          (a) the information concerns an incomplete proposal or negotiation;
          (b) the information comprises matters of supposition or is insufficiently definite to warrant disclosure;
          (c) the information is generated for the internal management purposes of the entity;
          (d) the information is a trade secret.
          (4) In complying with the Exchange's disclosure requirements, an issuer must:
          (a) observe the Corporate Disclosure Policy set out in Appendix 7.1 of the Manual, and
          (b) ensure that its directors and executive officers are familiar with the Exchange's disclosure requirements and Corporate Disclosure Policy.
          (5) The Exchange will not waive any requirements under this Rule.

      • Announcement of Specific Information

        • 704

          In addition to Rule 703, an issuer must immediately announce the following:—

          General

          (1) Any change of address of the registered office of the issuer or of any office at which the Register of Members or any other register of securities of the issuer is kept.
          (2) Any proposed alteration to the Memorandum of Association or Articles of Association or Constitution of the issuer (see Rule 730 which requires issuers to seek the Exchange's approval for any alteration to their Articles or constituent documents).
          (3) [Deleted]
          (4) Any call to be made on partly paid securities of the issuer or of any of its principal subsidiaries.
          (5) Any qualification or emphasis of a matter by the auditors on the financial statements of:—
          (a) the issuer; or
          (b) any of the issuer's subsidiaries or associated companies, if the qualification or emphasis of a matter has a material impact on the issuer's consolidated accounts or the group's financial position.
          (6) If an issuer has previously announced its preliminary full-year results, any material adjustments to its preliminary full-year results made subsequently by auditors.

          Appointment Or Cessation of Service

          (7)
          (a) Any appointment or cessation of service of key persons such as director, chief executive officer, chief financial officer, chief operating officer, general manager or, qualified person or other executive officer of equivalent authority, company secretary, registrar or auditors of the issuer. The announcement of an appointment or cessation of service of key persons such as director, chief executive officer, chief financial officer, chief operating officer, general manager or, qualified person or other executive officer of equivalent authority must contain the information contained in Appendix 7.4.1 or Appendix 7.4.2, as the case may be.
          (b) In the case of a cessation of service of any director, chief executive officer, chief financial officer, chief operating officer, general manager or other executive officer of equivalent authority, such persons must inform the Exchange in writing as soon as possible if he is aware of any irregularities in the issuer which would have a material impact on the group, including financial reporting.
          (8) Any appointment or reappointment of a director to the audit committee. The issuer must state in the announcement whether the board considers the director to be independent. The issuer must also provide such additional disclosure as may be appropriate in the circumstances to enable its shareholders to assess the independence or otherwise of the appointed director. In the event of any retirement or resignation which renders the audit committee unable to meet the minimum number (not less than three) the issuer should endeavour to fill the vacancy within two months, but in any case not later than three months.
          (9) Any appointment of a person who is a relative of a director or chief executive officer or substantial shareholder of the issuer to a managerial position in the issuer or any of its principal subsidiaries. The announcement must state the job title, duties and responsibilities of the appointee, and the information required in Rule 704(7).
          (10) Any promotion of an appointee referred to in Rule 704(9).
          (11) Any appointment of, or change in legal representative(s) (or person(s) of equivalent authority, however described), appointed as required by any relevant law applicable to the issuer and/or any of its principal subsidiaries, with sole powers to represent, exercise rights on behalf of, the issuer and/or that principal subsidiary.
          (12) For issuers with principal subsidiaries based in jurisdictions other than Singapore, any of its independent directors' appointment or cessation of service from the boards of these principal subsidiaries.
          (13) Within 60 days after each financial year, the issuer must make an announcement of each person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer as set out in Appendix 7.2 Part II. If there are no such persons, the issuer must make an appropriate negative statement. The Exchange may require the issuer to provide additional information on any such person, including his remuneration, any changes to his duties, responsibilities and remuneration package.

          Appointment of Special Auditors

          (14) The Exchange may require an issuer to appoint a special auditor to review or investigate the issuer's affairs and report its findings to the Exchange or the issuer's Audit Committee or such other party as the Exchange may direct. The issuer may be required by the Exchange to immediately announce the requirement, together with such other information as the Exchange directs. The issuer may be required by the Exchange to announce the findings of the special auditors.

          General Meetings

          (15) The date, time and place of any general meeting. All notices convening meetings must be sent to shareholders at least 14 calendar days before the meeting (excluding the date of notice and the date of meeting). For meetings to pass special resolution(s), the notice must be sent to shareholders at least 21 calendar days before the meeting (excluding the date of notice and the date of meeting).
          (16) Immediately after each general meeting and before the commencement of the pre-opening session on the market day following the general meeting, whether the resolutions put to a general meeting of an issuer were passed. The announcement shall include:
          (a) Breakdown of all valid votes cast at the general meeting, in the following format:

          Resolution number and details Total number of shares represented by votes for and against the relevant resolution For Against
          Number of shares As a percentage of total number of votes for and against the resolution (%) Number of shares As a percentage of total number of votes for and against the resolution (%)
          (b) Details of parties who are required to abstain from voting on any resolution(s), including the number of shares held and the individual resolution(s) on which they are required to abstain from voting; and
          (a) Name of firm and/or person appointed as scrutineer.

          Acquisitions and Realisations

          (17) Any acquisition of—
          (a) shares resulting in the issuer holding 10% or more of the total voting rights of a quoted company;
          (b) except for an issuer which is a bank, finance company, securities dealing company or approved financial institution, quoted securities resulting in the issuer's aggregate cost of investment exceeding each multiple of 5% of the issuer's latest audited consolidated net tangible assets. The announcement must state:—
          (i) the aggregate cost of the issuer's quoted investments before and after the acquisition, and such amounts as a percentage of the latest audited consolidated net tangible assets of the issuer;
          (ii) the total market value of its quoted investments before and after the acquisition; and
          (iii) the amount of any provision for dimunition in value of investments;
          (c) shares resulting in a company becoming a subsidiary or an associated company of the issuer (providing the information required by Rule 1010(3) and (5)); and
          (d) shares resulting in the issuer increasing its shareholding in a subsidiary or an associated company (providing the information required by Rule 1010(3) and (5)).
          (18) Any sale of—
          (a) shares resulting in the issuer holding less than 10% of the total voting rights of a quoted company;
          (b) except for an issuer which is a bank, a finance company, a securities dealing company or an approved financial institution, quoted securities resulting in the issuer's aggregate cost of investment in quoted securities falling below each multiple of 5% of the issuer's latest audited consolidated net tangible assets. The announcement must contain the same information as required under Rule 704(17)(b)(i) to (iii), relating to a sale instead of an acquisition;
          (c) shares resulting in a company ceasing to be a subsidiary or an associated company of the issuer (providing the information required by Rule 1010(3) and (5)); and
          (d) shares resulting in the issuer reducing its shareholding in a subsidiary or an associated company (providing the information required by Rule 1010(3) and (5))
          (19) Any acquisition or disposal of shares or other assets which is required to be announced under Chapter 10.

          Winding Up, Judicial Management, etc

          (20) Any application filed with a court to wind up the issuer or any of its subsidiaries, or to place the issuer or any of its subsidiaries under judicial management.
          (21) The appointment of a receiver, judicial manager or liquidator of the issuer or any of its subsidiaries
          (22) Any breach of any loan covenants or any notice received from principal bankers or from the trustee of any debenture holders to demand repayment of loans granted to the issuer or any of its subsidiaries which, in the opinion of the issuer's directors, would result in the issuer facing a cash flow problem.
          (23) Where Rule 704(20), (21) or (22) applies, a monthly update must be announced regarding the issuer's financial situation, including:—
          (a) the state of any negotiations between the issuer and its principal bankers or trustee; and
          (b) the issuer's future direction, or other material development that may have a significant impact on the issuer's financial position.
          If any material development occurs between the monthly updates, it must be announced immediately.

          Announcement of Results, Dividends, etc

          (24) Any recommendation or declaration of a dividend (including a bonus or special dividend, if any), the rate and amount per share and date of payment. If dividends are not taxable in the hands of shareholders, this must be stated in the announcement and in the dividend advice to shareholders. If there is a material variation in the interim or final dividend rate compared to that for the previous corresponding period, the directors must state the reasons for the variation at the time the dividend is recommended or declared. If the directors decide not to declare or recommend a dividend, this must be announced together with the reason(s) for such decision.
          (25) After the end of each of the first three quarters of its financial year, half year or financial year, as the case may be, an issuer must not announce any:—
          (a) dividend;
          (b) capitalisation or rights issue;
          (c) closing of the books;
          (d) capital return;
          (e) passing of a dividend; or
          (f) sales or turnover
          unless it is accompanied by the results of the quarter, half year or financial year, as the case may be, or the results have been announced.

          Books Closure

          (26) Any intention to fix a books closure date, stating the date, reason and address of the share registry at which the relevant documents will be accepted for registration. At least 5 market days of notice (excluding the date of announcement and the books closure date) must be given for any books closure date. Issuers could consider a longer notice period, where necessary. Subject to the provisions of the Companies Act, the Exchange may agree to a shorter books closure period. In fixing a books closure date, an issuer must ensure that the last day of trading on a cum basis falls at least 1 day after the general meeting, if a general meeting is required to be held.
          (27) The issuer must not close its books for any purpose until at least 8 market days after the last day of the previous books closure period. This rule does not prohibit identical books closure dates for different purposes.

          Treasury Shares and Subsidiary Holdings

          (28) Any sale, transfer, cancellation and/or use of treasury shares, stating the following:—
          (a) Date of the sale, transfer, cancellation and/or use;
          (b) Purpose of such sale, transfer, cancellation and/or use;
          (c) Number of treasury shares sold, transferred, cancelled and/or used;
          (d) Number of treasury shares before and after such sale, transfer, cancellation and/or use;
          (e) Percentage of the number of treasury shares against the total number of shares outstanding in a class that is listed before and after such sale, transfer, cancellation and/or use; and
          (f) Value of the treasury shares if they are used for a sale or transfer, or cancelled.
          (28A) Any sale, transfer, cancellation and/or use of subsidiary holdings, stating the following:—
          (a) Date of the sale, transfer, cancellation and/or use;
          (b) Purpose of such sale, transfer, cancellation and/or use;
          (c) Number of subsidiary holdings sold, transferred, cancelled and/or used;
          (d) Number of subsidiary holdings before and after such sale, transfer, cancellation and/or use; and
          (e) Percentage of the number of subsidiary holdings against the total number of shares outstanding in a class that is listed before and after such sale, transfer, cancellation and/or use.

          Employee share option or share scheme

          (29) Any grant of options or shares. The announcement must be made on the date of the offer and provide details of the grant, including the following:—
          (a) Date of grant;
          (b) Exercise price of options granted;
          (c) Number of options or shares granted;
          (d) Market price of its securities on the date of grant;
          (e) Number of options or shares granted to each director and controlling shareholder (and each of their associates), if any; and
          (f) Validity period of the options.

          Use of Proceeds

          (30) The use of the IPO proceeds and any proceeds arising from any offerings pursuant to Chapter 8 as and when such funds are materially disbursed and whether such a use is in accordance with the stated use and in accordance with the percentage allocated in the prospectus or the announcement of the issuer. Where there is any material deviation from the stated use of proceeds, the issuer must announce the reasons for such deviation.

          Loan agreements / Issue of Debt Securities

          (31) when the issuer or any of its subsidiaries enters into a loan agreement or issues debt securities that contain a condition making reference to shareholding interests of any controlling shareholder in the issuer, or places restrictions on any change in control of the issuer, and the breach of this condition or restriction will cause a default in respect of the loan agreement or debt securities, significantly affecting the operations of the issuer:—
          (a) The details of the condition(s) making reference to shareholding interests of such controlling shareholder in the issuer or restrictions placed on any change in control of the issuer; and
          (b) The aggregate level of these facilities that may be affected by a breach of such condition or restriction.
          (32) Any breach of the terms of loan agreements or debt issues which may have a significant impact on the operations of the issuer.

          Amended on 1 January 2011, 29 September 2011, 19 November 2012, 27 September 2013, 1 August 2015, 31 March 2017, 26 June 2018, 23 August 2018 and 1 January 2019.

    • Part III Equity Securities — Periodic Reports

      • Financial Statements

        • 705

          (1) An issuer must announce the financial statements for the full financial year (as set out in Appendix 7.2) immediately after the figures are available, but in any event not later than 60 days after the relevant financial period.
          (2) An issuer must announce the financial statements for each of the first three quarters of its financial year (as set out in Appendix 7.2) immediately after the figures are available, but in any event not later than 45 days after the quarter end if:—
          (a) its market capitalization exceeded S$75 million as at 31 March 2003; or
          (b) it was listed after 31 March 2003 and its market capitalization exceeded S$75 million at the time of listing (based on the IPO issue price); or
          (c) its market capitalization is S$75 million or higher on the last trading day of each calendar year commencing from 31 December 2006. An issuer whose obligation falls within this sub-section (c) will have a grace period of a year to prepare for quarterly reporting. As an illustration, an issuer whose market capitalization is S$75 million or higher as at the end of the calendar year 31 December 2006 must announce its quarterly financial statements for any quarter of its financial year commencing in 2008. Notwithstanding the grace period, all issuers whose obligation falls under this subsection (c) are strongly encouraged to adopt quarterly reporting as soon as possible.
          (3)
          (a) An issuer who falls within the sub-sections in Rule 705(2) above must comply with Rule 705(2) even if its market capitalization subsequently decreases below S$75 million.
          (b) An issuer who does not fall within the sub-sections in Rule 705(2) above must announce its first half financial statements (as set out in Appendix 7.2) immediately after the figures are available, but in any event not later than 45 days after the relevant financial period.
          (4) Notwithstanding the foregoing, with respect to the first announcement to be made by the issuer pursuant to Rules 705(1) or (2) following its listing on the Exchange, where the time period between the date of its listing and the final date for the issuer to make the relevant announcement pursuant to Rule 705(1) or (2) above is less than 30 days, the issuer shall have 30 days from the relevant deadline to make the relevant announcement of the financial statements provided that the following conditions are satisfied:
          (a) the extension is announced by the issuer at the time of the issuer's listing; and
          (b) in the announcement referred to in paragraph (a), the issuer must confirm that there is no material adverse change to the financial position of the issuer since the date of its prospectus or introductory document issued in connection with its listing on the Exchange.
          (5) In the case of an announcement of interim financial statements (quarterly or half-yearly, as applicable, but excluding full year financial statements), an issuer's directors must provide a confirmation that, to the best of their knowledge, nothing has come to the attention of the board of directors which may render the interim financial statements to be false or misleading in any material aspect. In order to make this confirmation, directors would not be expected to commission an audit of these financial statements. The confirmation may be signed by 2 directors on behalf of the board of directors.

          Use of Funds/Cash for Life Science Companies and Mineral, Oil and Gas Companies that Qualified for Listing pursuant to Rule 210(8) and Rule 210(9) respectively

          (6) An issuer which qualified for listing pursuant to Rule 210(8) or Rule 210(9) must make a quarterly announcement on the use of funds/cash for the quarter and a projection on the use of funds/cash for the next immediate quarter, including material assumptions, immediately after the figures are available but in any event not later than 45 days after the first three quarters of the financial year and not later than 60 days after the last quarter. The issuer's directors must also provide a confirmation that, to the best of their knowledge, nothing has come to their attention which may render such information provided false or misleading in any material aspect. In order to make this confirmation, the directors would not be expected to commission an external audit or review of the statements. The confirmation may be signed by 2 directors on behalf of the board of directors.

          This rule ceases to apply:
          (i) For life science companies, once the issuer is able to meet the profit criteria under Rule 210(2)(a) or all its principal products have reached commercialisation;
          (ii) For mineral, oil or gas companies, once the issuer is able to meet the profit criteria under Rule 210(2)(a) or all its principal mineral, oil or gas assets are in production.
          (7) In the announcements required by Rule 705(1) and (6), a mineral, oil and gas company must also include details of exploration (including geophysical surveys), development and/or production activities undertaken by the issuer and a summary of the expenditure incurred on those activities, including explanations for any material variances with previous projections, for the period under review. If there has been no exploration, development and/or production activity respectively, that fact must be stated.

          Amended on 27 September 2013 and 23 August 2018.

        • 706

          In addition to the information required under Rule 705, the Exchange may require additional information to be disclosed.

      • Annual Report

        • 707

          (1) The time between the end of an issuer's financial year and the date of its annual general meeting (if any) must not exceed four months.
          (2) An issuer must issue its annual report to shareholders and the Exchange at least 14 days before the date of its annual general meeting.
          (3) Notwithstanding Rules 707(1) and (2), with respect to the first annual general meeting immediately following the issuer's listing on the Exchange, where the time period between its listing on the Exchange and the final date for the issuer to hold its annual general meeting pursuant to Rule 707(1) above is less than 30 days, the issuer shall have 30 days from the relevant deadline to hold its annual general meeting, provided that:
          (a) such an extension is permitted by and in accordance with all relevant laws and regulations governing the issuer in its place of constitution;
          (b) the Exchange is notified of such an extension at the time of the issuer's listing;
          (c) the extension is announced by the issuer at the time of the issuer's listing; and
          (d) in the announcement referred to in paragraph (c), the issuer must confirm that:
          (i) there is no material adverse change to the financial position of the issuer since the date of its prospectus or introductory document issued in connection with its listing on the Exchange; and
          (ii) the extension is permitted by and in accordance with all relevant laws and regulations governing the issuer in its place of constitution.

        • 708

          The chairman's statement (or equivalent) in the annual report must provide a balanced and readable summary of the issuer's performance and prospects, and should represent the collective view of the board. If the Chairman's statement does not represent the collective view of the board, the view of each dissenting director must be disclosed in the annual report.

        • 709

          The annual report must contain the information required in Part III of Chapter 12.

        • 710

          An issuer must describe in its annual report its corporate governance practices with specific reference to the principles and the provisions of the Code. An issuer must comply with the principles of the Code. Where an issuer's practices vary from any provisions of the Code, it must explicitly state, in its annual report, the provision from which it has varied, explain the reason for variation, and explain how the practices it had adopted are consistent with the intent of the relevant principle.

          Amended on 1 January 2019.

        • 711

          An issuer may issue a summary financial statement in accordance with the Companies Act or any other applicable written law, regulation or code. However, the Exchange may require the issuer to disclose additional information.

          Amended on 31 March 2017.

      • Sustainability Report

        • 711A

          An issuer must issue a sustainability report for its financial year, no later than 5 months after the end of the financial year.

          Added on 20 July 2016.

        • 711B

          (1) The sustainability report must describe the sustainability practices with reference to the following primary components:
          (a) material environmental, social and governance factors;
          (b) policies, practices and performance;
          (c) targets;
          (d) sustainability reporting framework; and
          (e) Board statement.
          (2) If the issuer excludes any primary component, it must disclose such exclusion and describe what it does instead, with reasons for doing so.

          Added on 20 July 2016.

      • Appointment of Auditors

        • 712

          (1) An issuer must appoint a suitable auditing firm to meet its audit obligations, having regard to the adequacy of the resources and experience of the auditing firm and the audit engagement partner assigned to the audit, the firm's other audit engagements, the size and complexity of the listed group being audited, and the number and experience of supervisory and professional staff assigned to the particular audit. A mineral, oil and gas company must appoint an auditing firm where the auditing firm and audit partner-in-charge have the relevant industry experience.
          (2) The auditing firm appointed by the issuer must be:—
          (a) Registered with the Accounting and Corporate Regulatory Authority (“ACRA”);
          (b) Registered with and/or regulated by an independent audit oversight body acceptable to the Exchange. Such oversight bodies should be members of the International Forum of Independent Audit Regulators, independent of the accounting profession and directly responsible for the system of recurring inspection of accounting firms or are able to exercise oversight of inspections undertaken by professional bodies; or
          (c) Any other auditing firm acceptable by the Exchange.
          (3) A change in auditing firm must be specifically approved by shareholders in a general meeting.

          Amended on 29 September 2011 and 27 September 2013.

        • 713

          (1) An issuer must disclose in its annual report the date of appointment and the name of the audit partner in charge of auditing the issuer and its group of companies. The audit partner must not be in charge of more than 5 consecutive audits for a full financial year, the first audit being for the financial year beginning on or after 1 January 1997, regardless of the date of listing. The audit partner may return after two years.
          (2) If the listing of an issuer occurs after 5 consecutive audits by the same audit partner in charge, the same audit partner may complete the audit of the financial year in which the issuer lists.

        • 714

          The Exchange may object to the appointment of an auditor or may require an issuer to replace its auditor if the Exchange is of the opinion that it is in the interest of shareholders to do so or that the new auditor does not satisfy the requirement in Rule 712. This rule does not apply to a financial institution licensed or approved by the Monetary Authority of Singapore.

          Amended on 29 September 2011.

        • 715

          (1) Subject to Rule 716, an issuer must engage the same auditing firm based in Singapore to audit its accounts, and its Singapore-incorporated subsidiaries and significant associated companies.
          (2) An issuer must engage a suitable auditing firm for its significant foreign-incorporated subsidiaries and associated companies.

          Amended on 29 September 2011.

        • 716

          An issuer may appoint different auditing firms for its subsidiaries or significant associated companies (referred to in Rule 715(1)) provided that:—

          (1) the issuer's board and audit committee are satisfied that the appointment would not compromise the standard and effectiveness of the audit of the issuer; or
          (2) the issuer's subsidiary or associated company, is listed on a stock exchange.

          Amended on 29 September 2011.

        • 717

          An issuer must disclose in the annual report the names of the auditing firm(s) for its significant subsidiaries and associated companies.

          Amended on 29 September 2011.

        • 718

          For the purpose of Rules 715 to 717, a subsidiary or associated company is considered significant if its net tangible assets represent 20% or more of the issuer's consolidated net tangible assets, or its pre-tax profits account for 20% or more of the issuer's consolidated pre-tax profits.

    • Part IV Equity Securities — Other Obligations

      • Suspected Fraud or Irregularity

        • 719

          (1) Internal Controls and Risk Management Systems

          An issuer should have adequate and effective systems of internal controls (including financial, operational, compliance and information technology controls) and risk management systems. The audit committee may commission an independent audit on internal controls and risk management systems for its assurance, or where it is not satisfied with the systems of internal controls and risk management.
          (2) Suspected Fraud Or Irregularity

          If the audit committee of an issuer becomes aware of any suspected fraud or irregularity, or suspected infringement of any Singapore laws or regulations or rules of the Exchange or any other regulatory authority in Singapore, which has or is likely to have a material impact on the issuer's operating results or financial position, the audit committee must discuss such matter with the external auditor and, at an appropriate time, report the matter to the board.
          (3) Internal Audit

          An issuer must establish and maintain on an ongoing basis, an effective internal audit function that is adequately resourced and independent of the activities it audits.

          Amended on 29 September 2011 and 1 January 2019.

      • Directors & Management

        Amended on 29 September 2011.

        • 720

          (1) An issuer must procure undertakings to comply with the Exchange's listing rules from all its directors and executive officers (in the form set out in Appendix 7.7) and submit the undertakings to the Exchange if required. An issuer must comply with Rule 210(5), Rule 221 (if applicable) and Rule 210(9)(e) (if applicable) on a continuing basis.
          (2) Without limiting the generality of the foregoing, where a director is disqualified from acting as a director in any jurisdiction for reasons other than on technical grounds, he must immediately resign from the board of directors of the issuer. An announcement containing the details in Appendix 7.4.2 must be made.
          (3)
          (a) The Exchange may require an issuer to obtain the approval of the Exchange for the appointment of a director, a chief executive officer and chief financial officer (or its equivalent rank).
          (b) The circumstances under which the Exchange may effect Rule 720(3)(a) include but are not limited to:—
          (i) Where the issuer is the subject of an investigation into the affairs of the issuer by a special auditor appointed under Rule 704(12), or a regulatory or enforcement agency;
          (ii) Where the integrity of the market may be adversely affected;
          (iii) Where the Exchange thinks it necessary in the interests of the public or for the protection of investors; and
          (iv) Where the issuer refused to extend cooperation to the Exchange on regulatory matters.
          (c) The Exchange will give prior notice to the issuer where 3(a) is applicable.
          (4) [deleted]
          (5) An issuer must have all directors submit themselves for re-nomination and re-appointment at least once every three years.
          (6) When a candidate is proposed to be appointed for the first time or re-elected to the board at a general meeting, the issuer shall provide the information relating to the candidate as set out in Appendix 7.4.1 in the notice of meeting, annual report or relevant circular distributed to shareholders prior to the general meeting. The issuer must announce the outcome of the shareholder vote in accordance with Rule 704(16).

          Amended on 29 September 2011, 27 September 2013, 7 October 2015 and 1 January 2019.

      • Sale and Purchase Agreements

        • 721

          If an agreement has been entered into in connection with any acquisition or realisation of assets or any transaction outside the ordinary course of business of the issuer or its subsidiaries, and such an agreement has been disclosed publicly, the announcement must include a statement that a copy of the relevant agreement will be made available for inspection during normal business hours at the issuer's registered office for a period of 3 months from the date of the announcement.

      • Listing Fees

        Deleted on 25 September 2015.

      • Free Float

        • 723

          An issuer must ensure that at least 10% of the total number of issued shares excluding treasury shares (excluding preference shares and convertible equity securities) in a class that is listed is at all times held by the public.

        • 724

          (1) If the percentage of securities held in public hands falls below 10%: —
          (a) The issuer must, as soon as practicable, announce that fact; and
          (b) The Exchange may suspend trading of the class, or all the securities of the issuer.
          (2) The Exchange may allow the issuer a period of 3 months, or such longer period as the Exchange may agree, to raise the percentage of securities in public hands to at least 10%. The issuer may be removed from the Official List if it fails to restore the percentage of securities in public hands to at least 10% after the period.

          Amended on 7 October 2015.

      • Authorised Representatives

        • 725

          An issuer must appoint two authorised representatives who must be either directors or a director and the company secretary.

        • 726

          The responsibilities of an authorised representative are as follows: —

          (1) To be the principal channel of communication between the Exchange and the issuer at all times;
          (2) To supply the Exchange with details in writing of how he or she can be contacted, including home and office telephone numbers and, where available, facsimile numbers. The issuer must notify the Exchange of any changes to such details;
          (3) To ensure that whenever he or she is outside Singapore, suitable alternates are appointed, available and known to the Exchange, and to supply the Exchange with details in writing of how such alternates may be contacted, including their home and office telephone numbers and, where available, facsimile numbers; and
          (4) Not to terminate his or her role as authorised representative before notifying the Exchange of:—
          (a) the proposed termination; and
          (b) the name and relevant particulars of the replacement.

        • 727

          If the Exchange is not satisfied that the authorised representative is fulfilling his or her responsibilities adequately, it may require the issuer to terminate the appointment and appoint a replacement. The issuer must immediately notify the Exchange of the new authorised representative's appointment and relevant particulars.

      • Share Pledging Arrangements

        Added on 29 September 2011.

        • 728

          (1) Where any borrowings or loans of the issuer or any of its subsidiaries contains any provisions which makes reference to the shareholding interest of any controlling shareholder(s), the issuer must obtain an undertaking from such controlling shareholder(s) to notify the issuer, as soon as it becomes aware, of any share pledging arrangements relating to these shares and of any event which may result in a breach of the issuer's loan provisions.
          (2) Upon notification by the controlling shareholder(s), the issuer must immediately announce the following information:—
          (a) The name of the shareholder;
          (b) The class and number of shares and the percentage of the issuer's voting rights that is the subject of the security interest;
          (c) The party or parties in whose favour the security interest is created or financial instrument given; and
          (d) All other material details which are necessary for the understanding of the arrangements.

          Amended on 29 September 2011, 31 March 2017 and 26 June 2018.

      • Restriction on Transfer of Securities

        Added on 29 September 2011.

        • 729

          Where the trading of securities of an issuer is suspended, there must not be any transfers of securities, unless approved by the Exchange.

          Amended on 29 September 2011.

      • Alteration of Articles of Association

        • 730

          (1) An issuer whose Articles of Association or other constituent documents have been approved by the Exchange, must not delete, amend or add to such documents without prior written approval from the Exchange.
          (2) If an issuer amends its Articles of Association or other constituent documents, they must be made consistent with all the listing rules prevailing at the time of amendment.

      • Facilitating Interaction with Shareholders

        • 730A

          (1) An issuer shall hold all its general meetings in Singapore, unless prohibited by relevant laws and regulations in the jurisdiction of its incorporation.
          (2) All resolutions at general meetings shall be voted by poll.
          (3) At least one scrutineer shall be appointed for each general meeting. The appointed scrutineer(s) shall be independent of the persons undertaking the polling process. Where the appointed scrutineer is interested in the resolution(s) to be passed at the general meeting, it shall refrain from acting as the scrutineer for such resolution(s).
          (4) The appointed scrutineer shall exercise the following duties:
          (a) ensuring that satisfactory procedures of the voting process are in place before the general meeting; and
          (b) directing and supervising the count of the votes cast through proxy and in person.

          Added on 1 January 2014 and amended on 1 August 2015.

      • Dual Class Share Structure

        • 730B

          For an issuer with a dual class share structure, the following matters must be voted through the enhanced voting process:

          (1) changes to the issuer's Articles of Association or other constituent documents;
          (2) variation of rights attached to any class of shares;
          (3) appointment and removal of independent directors;
          (4) appointment and removal of auditors;
          (5) reverse takeover of the issuer as set out in Rule 1015;
          (6) winding up of the issuer; and
          (7) delisting of the issuer as set out in Rule 1307.

          For the avoidance of doubt, the relevant voting thresholds in respect of each of the above matters will continue to apply.

          Added on 26 June 2018.

    • Part V Operational and Trading Matters

      • Allotment

        • 731

          An issuer must allot securities and despatch certificates within 10 market days of the closing date for applications to subscribe for a new issue of securities. The Exchange may grant an extension of time.

      • Transfers, Registration and Splitting

        • 732

          An issuer must:—

          (1) accept for registration transfers of the issuer's securities executed on a standard form of transfer approved by the Exchange or on such other form as may be approved by the Exchange.
          (2) issue certificates in requested denominations when requested by the transferee at the time of lodgement of registrable transfers.
          (3) despatch within 10 market days after the day of lodgement of a registrable transfer, a certificate in respect of such securities and a balance certificate for any remainder.
          (4) when so requested by the transferee at the time of lodgement of a registrable transfer, despatch the certificate in respect of those securities to the lodging broker.
          (5) not refuse to register or fail to register or give effect to any registrable transfer in respect of securities issued by the issuer unless:—
          (a) registration of the transfer would result in a contravention of or failure to observe Singapore laws or the rules and requirements of the Exchange; or
          (b) the transfer is in respect of a partly paid security for which a call has been made and is unpaid. .
          (6) endorse (where necessary) transfer forms with the notation "power of attorney exhibited" or "probate exhibited" on production of the proper documents and do so without charge.
          (7) split certificates within 5 market days or certify transfers within 2 market days on lodgement of the relevant certificates as follows:—

          "Certificate No. . ...... is held in the Company's office against this transfer No. .......................... for ........................ on the .............. Register. This transfer must be completed and returned within forty-two days from this date, .......

          Name of Company
          Official Signature(s)"
          (8) split provisional allotment letters within 2 market days.

        • 733

          If in the exercise of its rights under Rule 732(5), an issuer refuses to register a transfer of a security, it must give to the lodging party written notice of the refusal and the precise reasons therefore within 10 market days after the date on which the transfer was lodged with the issuer.

        • 734

          An issuer must not charge more than $2.00 for each certificate issued.

      • Certificates

        • 735

          The number of securities represented by any certificate must be clearly shown in words and figures on the face of the certificate or in such other manner as may be approved by the Exchange.

        • 736

          Any certificates should be designed so that forgery and/or alterations are readily detectable. The printing of securities certificates must be entrusted to recognised security printers. The paper for securities must be first class bond or banknote paper containing a watermark of the printer or issuer. If more than one class of securities are listed on the Exchange, the colour of the certificates for each class of securities must be distinctly different. Where an issuer's Articles of Association restrict the percentage of shares held in foreign hands and the shares of the issuer are accordingly designated as foreign shares or local shares, such foreign shares and local shares are considered to be two separate classes of shares for the purpose of this rule.

      • Proxy Forms

        • 737

          Proxy forms must be designed in a manner that will allow a shareholder appointing a proxy to indicate how the shareholder would like the proxy to vote in relation to each resolution.

      • Register

        • 738

          An issuer must give the Exchange, or any Member Company upon request, an extract of the stock or share register. This must show details on or between the named date or dates of all entries relating to the registration or transfer of stock and shares, including particulars of the relevant certificate numbers and the names into which or from which any particular stock or shares may have been transferred. Where the issuer's securities are traded on the scripless system, the issuer authorises CDP to provide the Exchange, at the Exchange's request, with an extract of the issuer's securities held in each securities account maintained by CDP, in such detail as may be required by the Exchange.

        • 739

          An issuer must permit its securities to be transferred to CDP or from a main register to a branch register (and vice versa) without restriction.

      • Documents

        • 740

          A document given to the Exchange by an entity, or on its behalf, becomes and remains the property of the Exchange to deal with as it wishes, including copying, storing in a retrieval system, transmitting and selling to the public, and publishing any part of the document and permitting others to do so. The documents referred to in this rule include a document given to the Exchange in support of a listing application or in compliance with the listing rules.

        • 741

          Documents for overseas shareholders shall be forwarded by air or by facsimile transmission or, in another way that ensures that the documents will be received quickly.

        • 742

          Where an issue of securities is to be made overseas and is supported by a prospectus or other public documents, the prospectus or other public documents must be submitted to the Exchange in English. Such documents must be endorsed "Specimen — For information only".

        • 743

          An issuer must supply the Exchange with 30 final printed copies or such number as the Exchange may require from time to time (and one soft copy in such format as the Exchange may require) of the following documents for public release:—

          (1) All periodic and special reports, circulars, etc., released or issued by the issuer for the information of holders of any of the issuer's listed securities;
          (2) The published accounts of the issuer and all documents annexed thereto, as soon as issued.

        • 744

          Rule 743 does not apply to an announcement released to the Exchange via SGXNET.

    • Part VI [Deleted]

      Deleted on 19 May 2016.

    • Part VII Investment Funds — Continuing Listing Obligations

      • 748

        An investment fund must comply with Chapter 8, Parts I to IV of this Chapter, and the following requirements:—

        Periodic Reports

        (1) An investment fund must announce via SGXNET its net tangible assets per share or per unit at the end of each week.
        (2) The financial reports for the first half year of, and for, the financial year to be released pursuant to Rule 705 must give a breakdown of the income received between:—
        (a) dividends and interest; and
        (b) any other income.

        Annual Report

        (3) The annual report of an investment fund must also disclose the following information:—
        (a) A list of all investments with a value greater than 5% of the investment fund's gross assets, and at least the 10 largest investments stating, with comparative figures where relevant:—
        (i) a brief description of the business;
        (ii) proportion of share capital owned;
        (iii) cost;
        (iv) directors' valuation and in the case of listed investments, market value;
        (v) dividends received during the year (indicating any interim dividends);
        (vi) dividend cover or underlying earnings;
        (vii) any extraordinary items; and
        (viii) net assets attributable to investments;
        (b) An analysis of any provision for diminution in the value of investments, stating for each such investment:—
        (i) cost;
        (ii) provision made; and
        (iii) book value;
        (c) An analysis of realised and unrealised surpluses, stating separately profits and losses as between listed and unlisted investments; and
        (d) The names of the investment manager and investment adviser, together with an indication of the terms and duration of their appointment and the basis for their remuneration.
        (4) An investment fund must seek shareholders' approval for any change of the investment manager.
        (5) The custodian, investment manager, any of their connected persons and any director of the investment fund and investment manager, is prohibited from voting their own shares at, or being part of a quorum for, any meeting to approve any matter in which they have a material interest.
        (6) If an investment fund is also listed on another stock exchange, any information released to that stock exchange must also be released to the Exchange via SGXNET at the same time in English.
        (7) An investment fund that is a unit trust must also comply with the following requirements:—
        (a) The trustee must not have interests which, in the opinion of the Exchange, may materially conflict with the trustee's position as a trustee. The trustee must be independent of the investment manager and any person who holds 5% or more of the unit trust;
        (b) The investment fund must notify the Exchange via SGXNET at the end of each distribution period as soon as the following are computed by the managers:—
        (i) The gross and net earnings per unit before charging management participation;
        (ii) The net amount per unit (after allowing for charges and adjustments) to be distributed, together with the gross equivalent, attributable to the distribution period;
        (iii) The date of the striking of the unit holders register balances; and
        (iv) The date on and from which purchases and sales of units by the investment manager will take place ex-dividend;
        (c) An investment fund must notify the Exchange via SGXNET on request of the number of units outstanding;
        (d) The price of units (where applicable, the bid and offer price) must be fixed in accordance with the trust deed and the investment manager must announce such prices;
        (e) The investment manager must state clearly, in all circulars issued in respect of the sale of units of the trust, the terms upon which it undertakes to repurchase units. If there is no undertaking, it must state that fact; and
        (f) an investment fund must notify the Exchange immediately via SGXNET of:—
        (i) any changes in the control of the managers;
        (ii) any proposed change in the general character or nature of the trust; and
        (iii) any intention to renew, vary or terminate the trust.

    • Part VIII Mineral, Oil and Gas Companies — Continuing Listing Obligations

      • 749

        A mineral, oil and gas company must comply with paragraph 2 of Practice Note 6.3 for any disclosure of reserves, resources or exploration results.

        Added 27 September 2013.

      • 750

        A mineral, oil and gas company must comply with the following:

        (1) Make immediate announcement involving any material changes to the reserves and resources, including the basis upon which the issuer asserts the existence of any new material reserves or resources that has not been previously disclosed, where applicable. In addition, a summary qualified person's report in respect of the reserves and resources must be announced as soon as practicable.

        Where the announcement involves the reporting of new material reserves or resources that have not been previously disclosed, or a 50% change or more in reserves or resources that have been previously reported on, the summary qualified person's report must be prepared by an independent qualified person.
        (2) Make immediate announcement of any change in the Standard adopted by the issuer, including the reasons for the change and the impact, if any, on its existing stated level of reserves and resources.

        Added 27 September 2013 and amended on 23 August 2018.

    • Part IX Secondary Listings — Continuing Listing Obligations

      • 751

        An issuer with a secondary listing on the SGX Main Board must:

        (1) maintain its primary listing on the home exchange;
        (2) be subject to all the applicable listing rules of the home exchange (unless a waiver has been obtained for any non-compliance); and
        (3) provide an annual certification in the form prescribed at Appendix 7.6 that it has complied with the applicable continuing listing obligations in the SGX Listing Manual;

        on a continuing basis.

        Added on 3 November 2014.

    • Part X Dual Class Share Structure — Continuing Listing Obligations

      • 752

        An issuer must comply with Rules 210(10)(c) to 210(10)(i) on a continuing basis.

        Added on 26 June 2018.

      • 753

        An issuer with a dual class share structure must prominently include a statement on the cover page of its announcements that the issuer is a company with a dual class share structure.

        Added on 26 June 2018.