FTT Market Conduct Rules

Question 1

What is the 'continuous disclosure' obligation for SGX-listed companies?

Accepted Answer

The obligation to immediately disclose any material information that would be likely to materially affect the price or value of its securities

Answer

The obligation to publish quarterly financial results

Answer

The obligation to provide daily trading volume updates to SGX

Answer

The obligation to disclose all board decisions within 24 hours

Question 2

What constitutes 'misleading conduct' in a securities transaction under the SFA?

Accepted Answer

Engaging in conduct that creates a false or misleading impression of the supply, demand, or price of a security

Answer

Publishing optimistic research reports about a company

Answer

Recommending a security to multiple clients simultaneously

Answer

Placing a large buy order that moves the market price

Question 3

Under SGX's listing rules, an 'interested person transaction' (IPT) requires:

Accepted Answer

Disclosure to SGX and, above certain thresholds, shareholder approval, when a listed company transacts with a director, substantial shareholder, or their associates

Answer

Only internal board approval without external disclosure

Answer

Automatic prohibition without MAS approval

Answer

Disclosure only if the transaction exceeds S$10 million

Question 4

What is a 'substantial shareholder' under the Companies Act in Singapore?

Accepted Answer

A person who has an interest in 5% or more of the voting shares of a company

Answer

A person who is a director of the company

Answer

A person who owns shares worth more than S$1 million

Answer

A person who is the single largest shareholder regardless of percentage

Question 5

What must a company director do before trading in the company's shares?

Accepted Answer

Give prior written notification to the company and observe blackout periods around results announcements

Answer

Simply execute the trade without any special requirements

Answer

Obtain MAS approval for each trade individually

Answer

Notify all shareholders of the intended trade before executing it

Question 6

What is a 'rights issue' and how does it benefit existing shareholders?

Accepted Answer

An offer by a listed company to existing shareholders to subscribe for new shares at a discount, pro-rata to their existing shareholding

Answer

A mandatory buyback of shares from shareholders at a premium

Answer

An offering of shares exclusively to institutional investors at market price

Answer

A bonus issue of free shares to all existing shareholders