5.11.1 Reduction in Paid-Up Ordinary Share Capital or Paid-Up Irredeemable and Non-Cumulative Preference Share Capital
Each General Clearing Member 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 CDP.
Amended on 1 July 20081 July 2008 and 29 December 201429 December 2014.
5.11.2 Preference Shares
(1) Each General Clearing Member incorporated in Singapore shall notify CDP prior to the date of issue of any preference share.
(2) A General Clearing Member 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:—
(a) unless the General Clearing Member notifies CDP 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) its financial resources is less than 150% of its total risk requirement; or
(ii) its aggregate indebtedness exceeds 600% of its aggregate resources;
(c) if such repurchase or redemption will cause an event in Rule 5.11.2(2)(b) to occur; or
(d) if CDP has prohibited in writing such a repurchase or redemption.
Amended on 1 July 20081 July 2008 and 29 December 201429 December 2014.
5.11.3 Qualifying Subordinated Loan
(1) A General Clearing Member shall obtain the prior approval of CDP if it enters a subordinated loan agreement in a format other than the format prescribed by CDP from time to time.
(2) Each General Clearing Member incorporated in Singapore, shall immediately notify CDP when it draws down a qualifying subordinated loan, no later than the date of draw down.
(3) A General 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 CDP;
(b) shall not repay, whether in part or in full, any subordinated loan principal that has matured:—
(i) unless the Clearing Member notifies CDP at least one (1) Market Day before the date of repayment;
(ii) if the financial resources of the Clearing Member, are less than 150% of its total risk requirement;
(iii) in the case of a General Clearing Member, if its aggregate indebtedness exceeds 600% of its aggregate resources;
(iv) if such a repayment will cause an event in Rules 5.11.3 (2)(b)(ii) or (iii) to occur; or
(v) if CDP has prohibited in writing such a repayment.
Amended on 1 July 20081 July 2008, 29 December 201429 December 2014 and 22 April 201922 April 2019.
5.11.4 Making of Unsecured Loan or Advance, Payment of Dividend or Director's Fees or Increase in Director's Remuneration by General Clearing Member
Each General Clearing Member shall not, without the prior written approval of CDP, make any unsecured loan or advance, pay any dividend or director's fees or increase any director's remuneration if:—
(1) in the case where the General Clearing Member is incorporated in Singapore:—
(a) the base capital of the General Clearing Member is less than the base capital requirement as prescribed in Rules 5.1.1(1) and 5.4;
(b) the financial resources of the General Clearing Member are less than 150% of its total risk requirement;
(c) the aggregate indebtedness of the General Clearing Member exceeds 600% of its aggregate resources; or
(d) such a loan, advance, payment or increase will cause an event in Rule 5.11.4(1)(a), (b) or (c) to occur; or
(2) in the case where the General Clearing Member is incorporated outside Singapore:—
(a) the net head office funds of the General Clearing Member are less than the net head office funds requirement as prescribed in Rules 5.1D.1(1) and 5.4;
(b) the adjusted net head office funds of the General Clearing Member are less than 150% of its total risk requirement;
(c) the aggregate indebtedness of the General Clearing Member exceeds 600% of its aggregate resources; or
(d) such a loan, advance, payment or increase will cause an event in Rules 5.11.4(2)(a), (b) or (c) to occur.
Amended on 1 July 20081 July 2008 and 29 December 201429 December 2014.
5.11.5 Credit Facilities
Each Clearing Member shall submit to CDP, in the manner as prescribed from time to time:
(1) a report on all its credit facilities with its financial institutions at such frequency as CDP shall require; and
(2) any change to its credit facilities, including variation of credit limits and addition or termination of credit facilities, immediately upon such change.
Added on 23 January 200923 January 2009.