Rule 3 — Legal Relationships and Legal Effect of DVP Instructions

3.1.1

An instruction submitted for DVP Settlement shall not be eligible for DVP Settlement if there are no corresponding instructions for matching.

Amended on 3 October 2009 3 October 2009.

3.1.2

Subject to Rule 3.6, all matched and validated transactions accepted for DVP Settlement shall be novated to CDP in accordance with this Rule.

Amended on 3 October 2009 3 October 2009.

The transaction accepted for DVP Settlement shall (unless earlier cancelled in accordance with Rule 6) be novated to CDP immediately after the Cut-off Time for DVP Validation on the Settlement Day on which such transaction is due for settlement in DVP Settlement.

Amended on 3 October 2009 3 October 2009.

3.2.1A

Upon the novation of a DVPT transaction to CDP:

(A)

(i) the obligation of the receiving Principal to pay the purchase consideration and brokerage to the buying Trading Member and the obligation of the buying Trading Member to pay the purchase consideration to its qualifying Clearing Member is replaced by the obligation of the receiving Principal to pay the purchase consideration and brokerage to CDP and the obligation of CDP to pay the same to the qualifying Clearing Member of the buying Trading Member. The right of the buying Trading Member to receive the purchase consideration and brokerage from the receiving Principal and the right of the qualifying Clearing Member to receive the purchase consideration from its buying Trading Member is replaced by the right of CDP to receive the purchase consideration and brokerage from the receiving Principal and the right of the qualifying Clearing Member of the buying Trading Member to receive the purchase consideration and brokerage from CDP;

(ii) the obligation of the qualifying Clearing Member of the buying Trading Member to deliver the securities to its buying Trading Member and the obligation of the buying Trading Member to deliver the securities to the receiving Principal is replaced by the obligation of CDP to deliver such securities to the receiving Principal's Designated Securities Account;

(iii) the obligation of the qualifying Clearing Member of a buying Trading Member to pay the purchase consideration to CDP under the Interbroker Settlement System is set off against the right of the same qualifying Clearing Member to receive the purchase consideration and brokerage from CDP; and

(iv) the obligation of CDP to deliver the securities to the qualifying Clearing Member of the buying Trading Member pursuant to a purchase transaction effected on the SGX-ST is replaced by the obligation of CDP to deliver the securities to the receiving Principal's Designated Securities Account.

(B)

(i) the obligation of the delivering Principal to deliver the securities from the delivering Principal's Designated Securities Account to the selling Trading Member and the obligation of the selling Trading Member to deliver the securities to its qualifying Clearing Member is replaced by the obligation of the delivering Principal to deliver such securities to CDP;

(ii) the obligation of the qualifying Clearing Member to pay the sale consideration to its selling Trading Member and the obligation of the selling Trading Member to pay the sale consideration less brokerage to the delivering Principal is replaced by the obligation of the qualifying Clearing Member of the selling Trading Member to pay the sale consideration less brokerage to CDP, and the obligation of CDP to pay the same to the delivering Principal. The right of the selling Trading Member to receive the sale consideration from its qualifying Clearing Member and the delivering Principal's right to receive the sale consideration less brokerage from the selling Trading Member is replaced by the delivering Principal's right to receive the sale consideration less brokerage from CDP and CDP's right to receive the same from the qualifying Clearing Member of the selling Trading Member;

(iii) the obligation of CDP to pay the sale consideration to the qualifying Clearing Member of the selling Trading Member under the Interbroker Settlement System is set off against the right of CDP to receive the sale consideration less brokerage from the same qualifying Clearing Member; and

(iv) the obligation of the qualifying Clearing Member of the selling Trading Member to deliver the securities to CDP pursuant to a sale transaction effected on the SGX-ST is replaced by the obligation of the delivering Principal to deliver the securities from the delivering Principal's Designated Securities Account to CDP.

Amended on 3 October 2009 3 October 2009.

3.2.2

Upon the novation of a FDVP transaction to CDP:

(a) the obligation of the receiving Principal to pay the consideration for the transfer is replaced by the obligation of the receiving Principal to pay that consideration to CDP;

(b) the obligation of the delivering Principal to transfer the securities to the receiving Principal's Designated Securities Account is replaced by the obligation of the delivering Principal to transfer the securities from the Designated Securities Account to CDP; and

(c) CDP is obliged upon receipt of the consideration for the transfer from the receiving Principal to transfer the securities to the receiving Principal's Designated Securities Account and to pay the said consideration to the delivering Principal.

Amended on 3 October 2009 3 October 2009.

3.2.3

The obligations and rights under the novated contracts:

(a) between the receiving Principal and CDP; and

(b) between the delivering Principal and CDP,

are owed by and to the parties as principals to each other notwithstanding that the receiving Principal or the delivering Principal may have acted as agent for another person submitting a DVP instruction.

Amended on 3 October 2009 3 October 2009 and 26 April 2013 26 April 2013.

3.2.4

The terms of the novated contracts are governed by these DVP Rules. In particular, each of the obligations to make payment is discharged by, and each of the entitlements to receive payment is satisfied by, net payment in accordance with these DVP Rules.

3.2.5

Notwithstanding that payment is settled on a net basis in DVP Settlement, the delivery of securities in DVP Settlement shall not be settled on a net basis.

CDP shall, pursuant to any novated contract which is due for settlement on any Settlement Day, make delivery of securities to the receiving Principal on that Settlement Day. CDP's obligation to make such delivery shall be discharged by crediting the securities to be delivered to the securities account or sub-account (the "Designated Securities Account") as specified by the receiving Principal when the receiving Principal is submitting a DVP instruction.

CDP shall, pursuant to any novated contract which is due for settlement on any Settlement Day, receive securities from the delivering Principal on that Settlement Day. CDP's entitlement to receive such securities shall be satisfied by debiting the securities to be received from the securities account or sub-account (the "Designated Securities Account") as specified by the delivering Principal when the delivering Principal is submitting a DVP instruction.

Amended on 3 October 2009 3 October 2009 and 26 April 2013 26 April 2013.

3.2.6

When the DVP instructions have been matched, CDP shall earmark, in the CDP Systems, the securities from the Designated Securities Account from which the delivery is to be effected. CDP shall be entitled to debit the earmarked securities on Settlement Day of the matched and validated transaction in DVP Settlement.

Amended on 3 October 2009 3 October 2009.

3.2.6A

Neither the Settlement Bank of the Principal nor any other person shall have any right to or interest in the securities in the Designated Securities Account which have been earmarked for delivery pursuant to Rule 3.2.6.

Added on 22 April 2013 22 April 2013.

3.3 Set off of Payment Obligations Under Novated Transactions

3.3.1

All payment obligations arising under the DVP transactions which are due for settlement on any Settlement Day shall be set off so that:

(a) the total of all amounts that a Principal is obliged to pay CDP on that Settlement Day shall be set off against the total of all amounts that the Principal is entitled to receive from CDP on that Settlement Day so that only a net amount is owed either to or from CDP. The net amount owing to CDP by the Principal for the same Settlement Day shall be known as the Net Debit Balance and the net amount owing by CDP to the Principal for the same Settlement Day shall be known as the Net Credit Balance; and

(b) the total of all amounts that a Clearing Member is obliged to pay CDP on that Settlement Day under the Interbroker Settlement System in respect of the DVP transactions shall be set off against the total of all amounts that the Clearing Member is entitled to receive from CDP under the Interbroker Settlement System in respect of the DVP transactions on that Settlement Day.

Amended on 3 October 2009 3 October 2009.

3.4 Rights of Clients of Principals

3.4.1

Any securities delivered or to be delivered by the Principal pursuant to a DVP transaction shall be delivered free from any interest of the Principal's client. The client shall not retain any equitable or legal interest in the securities debited from his securities account pursuant to a DVP transaction and shall not be entitled to trace nor claim any interest in the securities. The client's sole remedy in respect of such securities shall be against the Principal who delivered the securities.

Amended on 3 October 2009 3 October 2009.

3.4.2

The client shall look solely to his Principal for payment or delivery of any securities to be received by the client pursuant to a DVP transaction. CDP shall have no responsibility or liability to the client or to any person who is not a Participant, notwithstanding that CDP is counterparty to the novated contracts.

Amended on 3 October 2009 3 October 2009.

3.4.3

The Principal shall indemnify CDP on a full indemnity basis for any losses, damages, liabilities, costs, claims, actions and demands made by its clients against CDP arising in respect of the novated contracts.

3.4.4

Nothing in this Rule 3.4 shall preclude the Principal from claiming, subject to Rule 19, against CDP as a principal in respect of the novated contracts.

3.5 Representations Made When A DVP Instruction Submitted by the Principal is Matched and Validated

3.5.1

When a receiving Principal submits a DVP instruction which is matched and validated, the Principal warrants, represents and undertakes to CDP that it has sufficient funds to pay the purchase consideration and brokerage (if any) for the transaction or transfer to CDP on Settlement Day.

Amended on 3 October 2009 3 October 2009.

3.5.2

When a delivering Principal submits a DVP instruction which is matched and validated, the Principal warrants, represents and undertakes to CDP that it has sufficient securities to meet its delivery obligations pursuant to these DVP Rules on Settlement Day and that it has authorised CDP to earmark the said securities for delivery from its Designated Securities Account.

Amended on 3 October 2009 3 October 2009.

3.5.3

The Principal shall indemnify CDP against any losses, damages, liabilities, costs, claims, actions and demands which it may incur or which may be made against it as a result of or arising from the breach of the warranties, representations and undertakings of the Principal provided for in or given pursuant to these DVP Rules.

3.5.4

CDP shall be entitled to claim against the Principal for the indemnity provided for under Rule 3.5.3 without prejudice to any other rights or remedies which it may have under these DVP Rules or otherwise.

3.6 Obligations of CDP

3.6.1

CDP shall not be under any obligation to, and shall not be liable to, any party for instructions which have been matched and validated, but which do not correspond to an actual trade transacted on SGX-ST.

Added on 3 October 2009 3 October 2009.

3.6.2

CDP shall not be under any obligation, and shall not be liable to any party, to ensure that DVPT instructions submitted correspond to an actual trade transacted on SGX-ST, before matching and validation takes place.

Added on 3 October 2009 3 October 2009.

3.6.3

Where CDP has paid money and/or delivered securities pursuant to DVPT instructions which do not correspond with an actual trade transacted on SGX-ST for the same or lesser number of securities, CDP shall be able to recover any loss or damage suffered by it from the Clearing Member or Principal who submitted such instructions.

Added on 3 October 2009 3 October 2009.