Government Securities (Debt Market and Investment) Act 1992

2020 REVISED EDITION

This revised edition incorporates all amendments up to and including 1 December 2021 and comes into operation on 31 December 2021

An Act to establish and regulate the Government Securities Fund, the issue of reserves management Government securities in exchange for foreign reserve and to provide for the borrowing of moneys by the issue of Government securities and Treasury Bills in Singapore.

[Act 35 of 2021 wef 31/01/2022]

[Act 5 of 2022 wef 21/02/2022]

[6 March 1992]

PART 1

PRELIMINARY

Short title

1. This Act is the Government Securities (Debt Market and Investment) Act 1992.

[Act 35 of 2021 wef 31/01/2022]

Interpretation

2. In this Act, unless the context otherwise requires —

“advance deposits” means such deposits as are received under section 27;

“Authority” means the Monetary Authority of Singapore established under the Monetary Authority of Singapore Act 1970;

[Deleted by Act 35 of 2021 wef 31/01/2022]

“book‑entry Government securities” means any Government securities issued in Singapore under Part 5 in the form of an entry on the records of the Authority;

[Act 35 of 2021 wef 31/01/2022]

“financial institution” means any person licensed, approved, registered or regulated by the Authority, or exempted from such licensing, approval, registration or regulation, under any written law administered by the Authority;

“foreign reserve asset” has the meaning given by section 23(11) of the Monetary Authority of Singapore Act 1970;

[Act 5 of 2022 wef 21/02/2022]

“Government securities” means any stock, bond, note, certificate or similar instruments issued under this Act other than any Treasury Bill and any RMGS;

[Act 35 of 2021 wef 31/01/2022]

[Act 5 of 2022 wef 21/02/2022]

“Government Securities Fund” means the Government Securities Fund established under Part 2;

“primary dealer” means a person approved under Part 7A to be a primary dealer;

“public debt securities” means any securities issued under the Significant Infrastructure Government Loan Act 2021;

“regulations” means regulations made under this Act and, in relation to any particular issue of Government securities or Treasury Bills, includes any notification in the Gazette varying such regulations in relation to that issue;

[Act 35 of 2021 wef 31/01/2022]

“repealed 1923 Act” means the Local Treasury Bills Act 1923^* repealed by the Government Borrowing (Miscellaneous Amendments) Act 2021;

[Act 35 of 2021 wef 31/01/2022]

[*Updated to be consistent with the 2020 Revised Edition]

“RMGS” means an instrument called a reserves management Government security that is issued under Part 3A;

[Act 5 of 2022 wef 21/02/2022]

[Deleted by Act 35 of 2021 wef 31/01/2022]

“Treasury Bill” means a Treasury Bill issued in Singapore under the repealed 1923 Act or this Act, and includes a book-entry Treasury Bill, which is issued under either Act in the form of an entry on the records of the Authority;

[Act 35 of 2021 wef 31/01/2022]

“trustee stock” means any of the securities mentioned in the Trustees Act 1967 in which trustees may invest.

[15/2021]

PART 2

ESTABLISHMENT AND REGULATION
OF GOVERNMENT SECURITIES FUND

Government Securities Fund

3.—(1) A Government Securities Fund is established into which must be paid —

(a)	all sums representing the proceeds of loans raised or advance deposits accepted under this Act;
(b)	all sums representing the proceeds of loans raised on or after 1 April 1996 under the repealed 1923 Act; [Act 35 of 2021 wef 31/01/2022]
(ba)	all foreign reserve assets received by the Government from the Authority in exchange for RMGS issued to the Authority, all income from these foreign reserve assets and all proceeds realised from the disposition of any of the foreign reserve assets; [Act 5 of 2022 wef 21/02/2022]
(c)	all moneys from time to time authorised to be paid into the Government Securities Fund by this Act or any other written law; and
(d)	all income from the investment of moneys in the Government Securities Fund authorised to be made by this Act, and all profits arising from the realisation of any such investments.

(2) The Government Securities Fund is deemed to be a Government fund for the purposes of any written law.

Application of moneys in Government Securities Fund

4.—(1) The Minister may at any time apply all or any part of the moneys in the Government Securities Fund to the purchase of trustee stock or of any other stock, fund, security or investment mentioned in section 7(3) of the Financial Procedure Act 1966, except any stock, bond, fund or security issued by the Government.

(2) Nothing in subsection (1) prohibits the conversion of advance deposits to Government securities issued under this Act.

(3) To avoid doubt, this section does not prevent the Minister causing any foreign reserve assets that are not moneys comprised in the Government Securities Fund to be disposed of and the proceeds thereof to be applied in accordance with subsection (1).

[Act 5 of 2022 wef 21/02/2022]

Expenses

5. There are charged upon and payable out of the Government Securities Fund all expenses —

(a)

arising from or incidental to the investment and management of moneys and assets in the Government Securities Fund; and

[Act 5 of 2022 wef 21/02/2022]

(b)

arising from or incidental to —

(i)	any borrowing under this Act, the repealed 1923 Act and under any other written law authorising moneys borrowed to be paid into the Government Securities Fund; and
(ii)	any redemption of Government securities, Treasury Bills or RMGS, including the transfer of assets to the Authority upon redemption of any RMGS. [Act 5 of 2022 wef 21/02/2022]

Deficiencies in Government Securities Fund

6. Where the moneys in the Government Securities Fund are insufficient —

(a)

to repay any principal sum or interest payable on any Government securities issued or advance deposits accepted under this Act;

(b)

to repay any principal sum payable on any Treasury Bill —

(i)	issued on or after 1 April 1996 under the repealed 1923 Act; or
(ii)	issued under this Act; or [Act 35 of 2021 wef 31/01/2022]

(c)

to meet any other obligation charged upon the Government Securities Fund arising from this Act or any other written law,

at the time when they become due, the deficiency is charged upon and payable out of the Consolidated Fund.

Surpluses in Government Securities Fund

7. The Minister may by warrant under the hand of the Minister authorise the transfer to the Consolidated Fund of any moneys in the Government Securities Fund which, in the opinion of the Minister, are not required to meet the liabilities of the Government Securities Fund.

Application of Financial Procedure Act 1966

8. Sections 6 and 13 of the Financial Procedure Act 1966 do not apply to any loan raised under the provisions of this Act or to moneys in the Government Securities Fund.

Withdrawal of moneys from Government Securities Fund

9. Moneys must not be withdrawn from the Government Securities Fund unless they are charged on the Government Securities Fund or otherwise authorised to be withdrawn under this Act.

Mode of payment out of Government Securities Fund

10. A payment must not be made out of the Government Securities Fund unless the payment is authorised by a warrant signed by the Minister.