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 continuous disclosure obligation requires SGX-listed companies to immediately announce to SGX any material information that would, or would likely, have a material effect on the price or value of their securities, ensuring all investors have equal and timely access to price-sensitive information.

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

Misleading conduct in securities transactions involves any act that creates a false or misleading impression of the market for a security — including its supply, demand, or price — even if the intent is not deceptive. It is a market misconduct offence under the SFA.

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

IPTs must be disclosed to SGX. Above specified thresholds (5% or more of net tangible assets), shareholder approval at a general meeting is also required. The interested person who is a party to the IPT must abstain from voting on the resolution.

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

Under the Companies Act and SFA, a substantial shareholder is defined as a person who has an interest in 5% or more of the total voting shares of a company. Substantial shareholders must disclose their interests and any changes in their shareholding to the company and SGX.

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

Directors must notify the company before trading and must comply with blackout periods (typically 2 weeks before financial results announcements) when trading is prohibited. Notification must be made within 2 business days of any transaction under Singapore rules.

Singapore FTT Practice Test

Singapore FTT Practice Test

FTT Market Conduct Rules