3.15 Other Financial Requirements

3.15.1

Rules 3.15.2 to 3.15.5 shall not apply to a Remote Trading Member.

Added on 3 June 2019 3 June 2019.

A Trading Member that is incorporated in Singapore shall not reduce its paid-up ordinary share capital or paid-up irredeemable and non-cumulative preference share capital without the prior written approval of SGX-ST.

Added on 3 June 2019 3 June 2019.

3.15.3

Preference Shares

(a) A Trading Member that is incorporated in Singapore shall notify SGX-ST prior to the issue of any preference share.

(b) A Trading Member that is incorporated in Singapore 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:

(i) unless the Trading Member notifies SGX-ST within such time before the proposed date of repurchase or redemption as prescribed by the SFR (Financial and Margin Requirements);

(ii) if at the date of repurchase or redemption:

(I) its financial resources is less than 150% of its total risk requirement; or

(II) its aggregate indebtedness exceeds 600% of its aggregate resources;

(iii) if such repurchase or redemption will cause an event in Rule 3.15.3(b)(ii) above to occur; or

(iv) if SGX-ST has prohibited in writing such a repurchase or redemption.

Added on 3 June 2019 3 June 2019.

3.15.4

Qualifying Subordinated Loan

(a) A Trading Member shall obtain the prior approval of SGX-ST if it enters a subordinated loan agreement in a format other than the format prescribed by SGX-ST from time to time.

(b) Where a Trading Member draws down a qualifying subordinated loan, the Trading Member shall notify SGX-ST no later than the date of draw down of the qualifying subordinated loan.

(c) A Trading Member shall not repay, whether in part or in full, any subordinated loan principal before the maturity date without the prior approval of SGX-ST.

(d) A Trading Member shall not repay, whether in part or in full, any subordinated loan principal that has matured:

(i) unless the Trading Member notifies SGX-ST at least one Market Day before the date of repayment;

(ii) if its financial resources is less than 150% of its total risk requirement;

(iii) if its aggregate indebtedness exceeds 600% of its aggregate resources;

(iv) if such a repayment will cause an event in Rule 3.15.4(d)(ii) or (iii) to occur; or

(v) if SGX-ST has prohibited in writing such a repayment.

Added on 3 June 2019 3 June 2019.

3.15.5

A Trading Member shall not, without the prior written approval of SGX-ST, 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 Trading Member is incorporated in Singapore:

(i) its base capital is less than the base capital requirement as prescribed in Rules 3.2 and 3.5;

(ii) its financial resources is less than 150% of its total risk requirement;

(iii) its aggregate indebtedness exceeds 600% of its aggregate resources; or

(iv) such a loan, advance, payment or increase will cause an event in Rule 3.15.5(a)(i), (ii) or (iii) to occur; or

(b) in the case where the Trading Member is incorporated outside Singapore:

(i) its net head office funds is less than the base capital requirement as prescribed in Rules 3.2 and 3.5;

(ii) its adjusted net head office funds is less than 150% of its total risk requirement;

(iii) its aggregate indebtedness exceeds 600% of its aggregate resources; or

(iv) such a loan, advance, payment or increase will cause an event in Rule 3.15.5(b)(i), or (iii) to occur.

Added on 3 June 2019 3 June 2019.

3.15.6

A Remote Trading Member shall notify SGX-ST immediately of any actions taken relating to:

(a) any reduction in paid-up ordinary share capital;

(b) any issue of any preference share;

(c) the entry into a subordinated loan agreement in a format other than the format prescribed by SGX-ST from time to time, drawing down on a qualifying subordinated loan or repayment whether in part or in full, any subordinated loan principal before or upon maturity;

(d) any matter that has or may have a financial or capital impact on the Remote Trading Member and is or may be required to be reported to the Relevant Regulatory Authority.

Added on 3 June 2019 3 June 2019.

3.15.7

A Trading Member that holds a Capital Markets Services Licence must not issue or allot partly paid shares.

Added on 3 June 2019 3 June 2019.