2A.1 Base Capital Requirement

2A.1.1       The Exchange shall not grant membership to a corporation unless, at the time of such grant —

a.   where the corporation is incorporated in Singapore, its base capital; or

b.   where the corporation is a foreign company, its net head office funds,

 is not less than S$1 million or its foreign currency equivalent.

 

“Base capital” means the sum of —

(a)  the following items in the latest account of the corporation:

(i)  paid-up ordinary share capital;

(ii)  irredeemable and non-cumulative preference share capital; and

(iii)  reserve fund maintained under Rule 2A.3; and

(b)   any unappropriated profit or loss in the latest audited accounts of the corporation,

less any interim loss in the latest accounts of the corporation and any dividend that has been declared since the latest audited accounts of the corporation.

“Net head office funds”, in relation to a foreign company, means the net liability of the Singapore branch of that foreign company to its head office and any other branches outside of Singapore.

 

2A.1.2       The Member shall not cause or permit —

a.   where it is incorporated in Singapore, its base capital; or

b.   where it is a foreign company, its net head office funds,

 to fall below S$1 million or its foreign currency equivalent.

 

2A.1.3       If the Member fails to comply with or becomes aware that it will fail to comply with Rule 2A.1.2, the Member shall immediately notify —

a.   the Exchange; and

b.   the Relevant Clearing House of which the Member is a member.

 

2A.1.4       If the Exchange is notified by the Member under Rule 2A.1.3 or becomes aware that the Member has failed to comply with Rule 2A.1.2, the Exchange may —

a.   direct the Member to immediately do one or more of the following:

i.  cease any increase in positions and assets accepted for custody for any account carried by the Member;

ii.  transfer all or part of any client’s positions, securities margins, collateral, assets and accounts to one or more other Members;

iii.  operate its business in such manner and on such conditions as the Exchange may impose;

iv.  cease carrying on business in any or all of the trading activities permitted under this Rule book until such time the Member complies with Rule 2A.1.2, except that the Member may continue trading for the purposes of liquidation only or unless otherwise directed by the Exchange; or

b.   revoke the membership of the Member.

 

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