Securities and Futures (Market Conduct) (Exemption for Stabilising Action in respect of Dealings in Bonds) (No. 8) Regulations 2006

No. S 162

Securities and Futures Act

(Chapter 289)

Securities and Futures (Market Conduct) (Exemption for Stabilising Action in Respect of Dealings in Bonds) (No. 8) Regulations 2006

In exercise of the powers conferred by section 337(1) of the Securities and Futures Act, the Monetary Authority of Singapore hereby makes the following Regulations:

Citation and commencement

1.  These Regulations may be cited as the Securities and Futures (Market Conduct) (Exemption for Stabilising Action in respect of Dealings in Bonds) (No. 8) Regulations 2006 and shall come into operation on 15th March 2006.

Definitions

2.  In these Regulations, unless the context otherwise requires —

“2017 Bonds” means the 11-year 6.875% bonds due on 9th March 2017 issued by the Republic of Indonesia for a principal amount of up to US$1,000,000,000;

“2035 Bonds” means the 29-year and 7-month 8.50% bonds due on 12th October 2035 issued by the Republic of Indonesia for a principal amount of up to US$1,000,000,000;

“securities” has the same meaning as in section 239(1) of the Act;

“stabilising action” means an action taken in Singapore or elsewhere by Barclays Bank PLC, or any of its related corporations, to buy, or to offer or agree to buy —

(a) any of the 2017 Bonds in order to stabilise or maintain the market price of the 2017 Bonds in Singapore or elsewhere; or

(b) any of the 2035 Bonds in order to stabilise or maintain the market price of the 2035 Bonds in Singapore or elsewhere.

Exemption

3.—(1)  Sections 197 and 198 of the Act shall not apply to any stabilising action taken in respect of any of the 2017 Bonds, within 30 days from the date of issue of the 2017 Bonds, with —

(a) an institutional investor;

(b) a relevant person as defined in section 275(2) of the Act; or

(c) a person who acquires the 2017 Bonds as principal, if the consideration for the acquisition is not less than $200,000 (or its equivalent in a foreign currency) for each transaction, whether such amount is paid for in cash or by exchange of securities or other assets.

(2)  Sections 197 and 198 of the Act shall not apply to any stabilising action taken in respect of any of the 2035 Bonds, within 30 days from the date of issue of the 2035 Bonds, with —

(a) an institutional investor;

(b) a relevant person as defined in section 275(2) of the Act; or

(c) a person who acquires the 2035 Bonds as principal, if the consideration for the acquisition is not less than $200,000 (or its equivalent in a foreign currency) for each transaction, whether such amount is paid for in cash or by exchange of securities or other assets.

Made this 13th day of March 2006.

HENG SWEE KEAT

Managing Director,
Monetary Authority of Singapore.

[SFD CFD 014/99; AG/LEG/SL/289/2005/1 Vol. 11]