Rulebooks: Contents

Rulebooks
Mainboard Rules
Catalist Rules
SGX-ST Rules
Chapter 1 General
Chapter 2 Admission and Registration of Trading Members, Chief Executive Officers and Trading Representatives
2.22 Suspension and Restriction of Activities
Chapter 3 Capital and Financial Requirements
Chapter 4 Operational Requirements
Chapter 5 Trading Practices and Conduct
Chapter 6 Designated Market-Makers
Chapter 7 Listing and Quotation
Chapter 8 Trading
Chapter 9 Settlement
Chapter 10 Requirements on Specific Securities and Futures Contracts
Chapter 11 Cancellation of Contracts and Trades
Chapter 12 Supervision and Enforcement
Chapter 13 Definitions and Interpretation
Directives
Regulatory Notices
Practice Notes
Schedule A
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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  • 2.22 Suspension and Restriction of Activities

    • 2.22.1

      SGX-ST may, in its discretion, suspend, or otherwise impose restrictions or conditions on the activities of a Trading Member, Chief Executive Officer or Trading Representative (as applicable) if:

      (a) the Trading Member, Chief Executive Officer or Trading Representative has been charged with or is the subject of an investigation for any offence:
      (i) under the Securities and Futures Act;
      (ii) involving fraud or dishonesty, whether in or out of Singapore;
      (iii) relating to director's duties; or
      (iv) under any relevant law or regulation that governs that person's other business activities;
      (b) the Trading Member at any time fails to continue to satisfy any admission criteria, Approval Condition or any other requirement that is necessary to be complied with for subsistence of its membership;
      (c) the Trading Member is, in SGX-ST's opinion, in financial or operating difficulty, including but not limited to having insufficient capital for the conduct of its business or being in breach of any of the requirements set out in Rules 3.2 to 3.6;
      (d) the Trading Member defaults on any transaction in securities or futures contracts on SGX-ST;
      (e) the Trading Member breaches any term, condition or restriction imposed by SGX-ST pursuant to its powers under the Rules;
      (f) the Trading Member is, in SGX-ST's opinion, engaging in conduct that is inconsistent with just and equitable principles of trading;
      (g) the Trading Member is, in SGX-ST's opinion, conducting its activities in a manner detrimental to the financial integrity, reputation or interests of SGX-ST, or organised markets established or operated by SGX-ST;
      (h) in SGX-ST's opinion, a review should be carried out in respect of the Trading Member's management policies or business conduct in the interests of the Trading Member, SGX-ST, or organised markets established or operated by SGX-ST; or
      (i) it is necessary or desirable in the interests of maintaining a fair and orderly market or for ensuring a safe and efficient clearing facility, or for ensuring the integrity of the market or for proper management of systemic risk, or for investor protection, or it is directed by any authority.

      Added on 3 June 2019.

    • 2.22.2

      The suspension or restriction shall be for such duration as SGX-ST determines, save that in the case of a suspension or restriction by reason of the grounds under Rule 2.22.1(a), the suspension or restriction shall end when the Trading Member, Chief Executive Officer or Trading Representative is acquitted, the charge is not proceeded with, or no further action is taken in respect of the investigation.

      Added on 3 June 2019.

    • 2.22.3

      During the time a Trading Member is suspended, the Trading Member and its Trading Representatives:

      (a) must not enter into a new transaction without the approval of SGX-ST; and
      (b) remains liable to complete all contracts outstanding at the time of suspension. However, it must not deliver on any transaction or settle any transaction without the approval of SGX-ST.

      Added on 3 June 2019.

    • 2.22.4

      Other than suspending the Trading Member, the restrictions and conditions that SGX-ST may impose on the activities of a Trading Member include the following:

      (a) requiring the Trading Member immediately to take or not take any action as SGX-ST in its discretion may determine;
      (b) requiring any Director or Chief Executive Officer to step down from day-to-day conduct of the business affairs of the Trading Member, and/or require the Trading Member to not appoint any further or other Director or Chief Executive Officer without the prior approval of the SGX-ST; and
      (c) appointing one or more persons as Manager, on such terms and conditions as the SGX-ST may specify, to:
      (i) advise the Trading Member on the proper management of such of the business of the Trading Member as the SGX-ST may determine, and/or
      (ii) take custody or control of the relevant business of the Trading Member as the SGX-ST may determine and/or
      (iii) manage the business of the Trading Member.

      SGX-ST will determine the remuneration of the Manager, which must be paid by the Trading Member. The Trading Member is solely responsible for the Manager's acts and defaults. The Manager must carry out directions given by SGX-ST in relation to the business of the Trading Member, including carrying on the business of the Trading Member in accordance with the instructions of SGX-ST. The appointment of such Manager may be revoked by the SGX-ST at any time if the SGX-ST is satisfied that the reasons for the appointment have ceased to exist or on any other ground. Upon such revocation, the Manager shall cease to act as such.

      Added on 3 June 2019.

    • 2.22.5

      The Trading Member shall comply with any of SGX-ST's directions issued under Rule 2.22.4 and any failure to do so will constitute a breach of the Rules.

      Added on 3 June 2019.