SGX chooses and approves sponsors based on strict eligibility requirements, which require expertise in corporate finance and consulting service on compliance, and is carefully monitored and governed by the continuing obligation path. They are expected to hire skilled practitioners who must also be “Licensed Professionals” approved by SGX.

As SGX no longer explicitly supervises the entry and ongoing responsibilities of entities listed on Catalist, sponsors are liable. While there are no minimum quantitative entry conditions laid down by SGX, a business pursuing listing by Catalist must conform with listing specifications. SGX is not checking the IPO reports. The company’s admission is based on the determination of its suitability for listing by the sponsor.

They are permitted to sell given that their shares do not go below 50 percent of the post-invitation share capital. They can not sell any shares at the IPO if they hold less than 50 percent of the post-invitation equity capital at the IPO. They are also prohibited from selling all of their shares in the six months after the IPO and are only permitted to sell 50% of their shares in the following six months.

By multiplying the discrepancy between the price paid by the investor for the stock and the IPO price by the number of shares owned, the benefit portion is determined. For pre-IPO investors who have purchased their shares during the 12-month span preceding the IPO, the ‘benefit part’ of their shares will be subject to a 12-month moratorium following the IPO.

The regulatory framework used for the Catalist listing involves sponsor-supervised and exchange-regulated strategies. The analysis of IPOs & Post-IPO Oversight is the responsibility of the sponsors. Shorter lead times, smoother subsequent funding, purchases & clearances and ongoing sponsor advice are major advantages of catalyst listing for businesses. The overall thresholds for fund-raising are 50 to 100 percent for non-pro rata and 100 percent for pro rata.

The task of SGX is to establish rules and test the sponsors’ results, processes, and controls against their respective rules. When carrying out their evaluations, they evaluate the consistency and due diligence requirements of the approval process of the sponsor, the nature of the current operations, and whether there are violations of the law.

The SGX may privately or publicly rebuke the sponsor; order the directors and registered specialists to engage in a rules-compliant re-education programme; require remediation steps to be taken by registered professionals; place limits on the operations of registered professionals; or ban the sponsor from carrying out any or all of its operations.

Notifications shall be issued to all stakeholders for ordinary resolutions at least 14 days prior to the meeting and for special resolutions at least 21 days before the event. The owners of ordinary shares shall have the right to be present at every general assembly and to vote. Shareholders who can not attend a meeting of shareholders can nominate a proxy to attend and vote on their behalf. A proxy shall be entitled at every general meeting to vote on a majority vote on any issue.

The minimum licensing entrance requirements for companies applying for a CMS license guarantee that a CMS license is granted only to financially stable and credible corporate entities that are properly monitored and operated by rigorous and competent officers.

The Monetary Authority of Singapore has the power to do so. We expect CMS license holders to get prior permission from MAS to name a chief executive officer or director. This prohibits persons from being named who are not of good faith, especially if they have been suspected of dishonesty or bribery in Singapore or elsewhere or are undischarged bankrupts, or have dissatisfied judgment debts.

All designated members representing CMS license holders or exempt financial institutions must be a fit and suitable person, including reliability, integrity and sound credibility attributes; competence and ability; and financial stability, e.g. not becoming an undisclosed debtor, whether in or out of Singapore.

The decision of whether to register a representative or to cancel a registration depends on the severity or nature of the circumstances concerning the inability of the individual to satisfy a particular criterion; the importance of the unfulfilled requirements in relation to the duties to be performed and the roles to be accepted by the person; and the time that has passed.

Representative Notification Framework: As part of the notice, financial institutions shall certify that the members they wish to nominate are fit and suitable and shall conform with the requisite levels of competence, financial soundness, and honesty. After it processes the registration, it releases the name of the proposed delegate on the MAS website in the online Registry of Members.

This registry shall show the name of the representative, the supervised practices authorized to be carried out by the representative, the major companies for which the representative has served during the last 3 years, and any legal governance action against the delegate taken by MAS.

With this number, members of the public can check against the Register of Representatives the representatives they interact with, thus reducing their risk of interacting with uncontrolled persons. Financial companies are encouraged to make their members’ specific representative numbers freely accessible to customers in order to validate the regulatory status of their representatives.

A representative shall notify his principal company within 7 days after any modifications in his home address or other personal information. The principal business shall notify MAS of the change of information made by its agent no later than 14 days after the date of the change of information in a specified manner.

Derivatives or products which may include commodities are Specified Investment Products (SIPs). They have difficult traits and uncertainties that can subject investors to more variables that can create a loss. Examples of SIPs listed on an exchange include some exchange trading funds and bonds, structured warrants, futures, and certificates.

Not all clients have the expertise or experience to determine the dynamic characteristics of a SIP. Before opening a SIP trading account, CMS license holders and excluded financial firms must perform a Consumer Awareness Assessment (CKA) on a customer who is a retail trader to engage in any SIP that is not quoted on a stock or futures exchange.

They shall not authorize a customer to deal on a SIP after 3 years of the expiry from the date of operation of the CAR for the customer concerned before and until the holder of the CMS license has verified and is assured that the customer has transacted on a SIP trading account more than once during the intervening three-year period and more than once during each sub-period to the CMS license holder has carried out a new CAR for that particular customer.

Investment securities listed overseas bear a particular range of risks and security thresholds for customers. Before allowing the consumer to deal in any overseas investment commodity for the first time, they must give the risk warning document and receive the customer’s approval of the risk warning statement, in written form or otherwise.

CMS license holders or excluded financial firms shall keep track of customer acceptance of a risk alert statement that identifies the principal threats that consumers should be mindful of for a span of not less than five years when trading overseas investment goods.

Only after the opening of account with the necessary legal documentation received, completing the suitability evaluation, and developing the risk profile, should the customer be able to trade within his investment profile.

If the details to be used in the document have already been submitted to the customer by a clearinghouse of which the Member is a member, or the customer’s account has not been updated in a month; or if the customer is an authorized investor or a Business-related company and the customer has agreed to use electronic statements; or if the customer has asked not to use electronic statements; then there’s no need of monthly statements.

In order to audit the records and prepare a real and fair benefit and loss report and a balance sheet for each fiscal year, CMS license holders shall select an auditor. They must deposit the account and cash flow statement with MAS within 5 months of the close of the financial year, along with the auditor’s report regarding the account and balance sheet.

He will be eligible for a penalty not above $100,000 on prosecution or for imprisonment for a period not exceeding two years or both. The same punishment applies to any person who sends or makes a deal with another person to deliver any document or resource belonging to a holder of a CMS license from Singapore.

Customer’s assets include securities and resources (other than cash) in relation to the CMS license holder, including government securities and certificates of deposits, which are equitably held by the customer of the issuer of the CMS license.

The holder of the CMS license shall retain a trust account in which he deposits money earned on behalf of his clients with a bank licensed under the Banking Act; a merchant bank allowed under the MAS Act as a finance company, or a finance company approved under the Finance Companies Act.

Interest gained on the management of the money collected in the trust account on behalf of the client and all gains on the expenditure of money in compliance with SFR (LCB) Regulation 20 shall be attributed to the consumer. The issuer of the CMS license must ensure that the interest or returns paid to the customer are charged or kept for the customer’s benefit.

To avoid the customer’s trust account from being under-marginalized or under-funded, or to support the effective maintenance of that account, a CMS license holder may advance adequate money to the customer’s trust account from its own funds. The license holder of the CMS can keep any interest received and returned in consideration of the money advanced to the account by the CMS.

Before opening the custody account, the CMS license holder who holds the assets of its client in a custody account must do due diligence as to the custodian’s qualification for the customer or class of customers of the holder; and keep reports of the reasons for which the custodian has been selected.