WWLegal.com :: MAS Has Issued A Consultation Paper on Proposed Exemption from Section 31 Banking Act for Stabilising Activites

MAS Has Issued A Consultation Paper on Proposed Exemption from Section 31 Banking Act for Stabilising Activites
Posted on Monday, May 05, 2008 - 08:00 PM

Section 31 of the Banking Act restricts a bank’s equity investment in any single company to 2% of its capital funds, and is intended to limit concentration risks in the banks’ equity portfolio investments. MAS Notice 625 further applies this restriction on a consolidated basis to a bank group. MAS is proposing to exempt from Section 31 of the Banking Act, shares acquired by a bank or a bank group during the course of price stabilization activities carried out in the role of a lead manager of equity issues, provided certain prudential safeguards are met.

2. MAS invites interested parties to forward their views and comments on the proposals made in this paper and draft amendments to the Banking Regulations, which are appended at Annex A for ease of reference.

Electronic submission is encouraged. Please submit your written comments by 5 June 2008 to:
Prudential Policy Department
Monetary Authority of Singapore
10 Shenton Way
MAS Building
Singapore 079117
Fax: 62203973
Email: policy@mas.gov.sg

News