Securities administration - Singapore
Income collection
Most entitlements are received from issuing companies directly or via CDP and distributed to DAs via MEPS+ on payment date. Income payments in currencies other than SGD are credited to the DAs upon actual receipt of the funds from the issuing companies/CDP’s agents, normally on payment date +1 (PD+1).
Loan stocks, domestic bearer corporate bonds, domestic scripless bonds | |
Market Record date | Books close date. |
Basis for entitlement | Settled positions on books close date. |
Standard interest calculation rule | This is determined by the issuer. |
Dividend payment | |
Market Record date | Books close date. |
Ex-date | Books close date -1 business day. |
Basis for entitlement | Settled positions on books close date in CDP’s record. |
Standard interest calculation rule | Not applicable. |
Corporate actions
Most common corporate events
The most common corporate actions in Singapore are: bonus issues, right issues, cash dividends, cash/ share/tender offers, conversions of loan stocks, conversions of warrants, initial public offerings, interest payments, redemptions, liquidations, mergers and take-overs, name changes, proxy voting, stock splits and reverse splits.
Entitlements are received by the CDP from the listed companies and distributed to the account holders and depository agents.
Proxy voting and meeting attendance
Shareholder meetings are usually announced from three to six weeks in advance.
Shareholders can vote in person or appoint a proxy to vote on their behalf. They can also vote via a proxy voting card, which must be lodged with the issuing company 72 hours before the meeting date.
A nominee company (for example, a custodian bank) that is considered as a member in the companies register can vote on behalf of the shareholder. In accordance with Section 181 of the Companies Act, each registered shareholder or nominee company is allowed to send a maximum of two proxies only to attend the meeting and execute voting rights.
Section 97 of the Company Act (Amendment) Bill 2014 introduces a new multiple-proxies regime and has been implemented since early 2016 . Specified intermediaries such as banks and capital market services licence holders that provide nominee or custodial services, are allowed to appoint more than two proxies to attend shareholders’ meeting.