The Board may declare a corner in a listed or quoted security if, in its opinion:—(1) a single interest or a group has acquired control of enough of the supply of the security that it can only be obtained for delivery at prices, or on terms, dictated by the single interest or group; or(2) it is otherwise desirable in the interests of markets established or operated by SGX-ST.
The Board may impose any conditions it thinks fit on existing ready market or futures contracts on a cornered security or on dealing in a cornered security. For avoidance of doubt, the conditions may include:—(1) from time to time extending (or further extending) the due date for delivery; or(2) declaring that contracts will be cash settled (not delivered). The Board may direct the terms of the cash settlement or apply the following terms (in whole or in part) as it thinks fit:—(a) in the case of a seller who contracted to sell for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price;(b) in the case of a seller who contracted to sell for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price;(c) in the case of a buyer who contracted to buy for less than the fair settlement price, the seller must pay the buyer the difference between the fair settlement price and the contract price; and(d) in the case of a buyer who contracted to buy for more than the fair settlement price, the buyer must pay the seller the difference between the contract price and the fair settlement price.
If the Board imposes a condition that contracts are to be cash settled, it must establish a Settlement Committee to advise on the fair settlement price.
A Settlement Committee must comprise no less than 5 persons, including at least:—(1) 2 members of the Board;(2) 1 public accountant; and(3) 1 advocate and solicitor.
The quorum of the Settlement Committee is all members when the meeting proceeds to business, but the Settlement Committee may complete the business with any 3 present.
A Settlement Committee may include such other persons as the Board thinks fit.
A Settlement Committee may hear evidence as it thinks proper and relevant to the discharge of its functions.
A Settlement Committee must report its findings to the Board. The findings are advisory only. The Board will accept the Settlement Committee's recommendation on the fair settlement price, unless it has good reasons to reject it. The Board may refer a matter to the Settlement Committee for further consideration, before deciding on the fair settlement price.