2.11.1 Reduction in Paid-Up Ordinary Share Capital or Paid-Up Irredeemable and Non-Cumulative Preference Share Capital
2.11.1.1 Each Clearing Member incorporated in Singapore, except in the case of a Bank Clearing Member, shall not reduce its paid-up ordinary share capital or paid-up irredeemable and non-cumulative preference share capital without the prior approval of the Clearing House.
Amended on 27 March 200627 March 2006, 10 August 200710 August 2007 and 29 December 201429 December 2014.
2.11.2 Preference Share
2.11.2.1 Each Clearing Member incorporated in Singapore, except in the case of a Bank Clearing Member, shall immediately notify the Clearing House prior to the date of issue of any preference share.
2.11.2.2 A Clearing Member incorporated in Singapore, except in the case of a Bank Clearing Member, shall not repay the principal of any preference share (other than any paid-up irredeemable and non-cumulative preference share capital) that is computed as part of its financial resources, through repurchase or redemption:—
a. unless the Clearing Member notifies the Clearing House within such time before the proposed date of repurchase or redemption as prescribed by the SFR (Financial and Margin Requirements);
b. if at the date of repurchase or redemption:—
i. the financial resources of the Clearing Member is less than 150% of its total risk requirement; or
ii. the aggregate indebtedness of the Clearing Member exceeds 600% of its aggregate resources;
c. if such a repurchase or redemption will cause an event in Rule 2.11.2.2.b above to occur; or
d. if the Clearing House has prohibited in writing such a repurchase or redemption.
Amended on 27 March 200627 March 2006, 10 August 200710 August 2007 and 29 December 201429 December 2014.
2.11.3 Qualifying Subordinated Loans
2.11.3.1 Each General Clearing Member or Direct Clearing Member incorporated in Singapore, shall immediately notify the Clearing House when it draws down a qualifying subordinated loan no later than the date of draw down.
2.11.3.2 A General Clearing Member or Direct Clearing Member incorporated in Singapore:—
a. shall not repay, whether in part or in full, any subordinated loan principal before the maturity date without the prior approval of the Clearing House;
b. shall not repay, whether in part or in full, any subordinated loan principal that has matured:—
i. unless the Clearing Member notifies the Clearing House at least one (1) Business Day before the date of repayment;
ii. if the financial resources ofthe Clearing Member, are less than 150% of its total risk requirement;
iii. in the case of a General Clearing Member or Direct Clearing Member, if the aggregate indebtedness of the General Clearing Member or Direct Clearing Member exceeds 600% of its aggregate resources;
iv. if such a repayment will cause an event in Rules 2.11.3.2.b.ii or iii to occur; or
v. if the Clearing House has prohibited in writing such a repayment.
Amended on 27 March 200627 March 2006, 10 August 200710 August 2007, 29 December 201429 December 2014 and 22 April 201922 April 2019.
2.11.4 Making of Unsecured Loan or Advance, Payment of Dividend or Director's Fees or Increase in Director's Remuneration
2.11.4.1 Each Clearing Member, except for a Bank Clearing Member or a Remote Clearing Member, shall not, without the prior written approval of the Clearing House, make any unsecured loan or advance, pay any dividend or director's fees or increase any director's remuneration if:—
a. in the case where the Clearing Member is incorporated in Singapore:—
i. the base capital of the Clearing Member is less than the base capital requirement applicable to the Clearing Member under Rule 2.07;
ii. the financial resources of the Clearing Member are less than 150% of its total risk requirement;
iii. the aggregate indebtedness of the Clearing Member exceeds 600% of its aggregate resources; or
iv. such a loan, advance, payment or increase will cause an event in Rules 2.11.4.1.a.i, ii or iii to occur;
or
b. in the case where the Clearing Member is incorporated outside Singapore:—
i. the net head office funds of the Clearing Member are below the net head office funds requirement applicable to the Clearing Member under Rule 2.08;
ii. the adjusted net head office funds of the Clearing Member are less than 150% of its total risk requirement;
iii. the aggregate indebtedness of the Clearing Member exceeds 600% of its aggregate resources; or
iv. such a loan, advance, payment or increase will cause an event in Rules 2.11.4.1.b.i, ii or iii to occur.
2.11.4.1A A Remote Clearing Member shall notify the Clearing House immediately of any action taken that has or may have a financial or capital impact on the Remote Clearing Member and is required to be reported to the Relevant Regulatory Authority, or in relation to the events set out in Rule 2.11.4.1.
Amended on 27 March 200627 March 2006, 10 August 200710 August 2007, 29 December 201429 December 2014 and 22 April 201922 April 2019.