Frequently Asked Questions

Short Selling

 Are there any penalties on short-selling?

If you do not have the required shares in your account for delivery on the Settlement Day (the second Market Day following the trade day, or T+2), CDP will buy-in shares on the market to satisfy the delivery obligation. Buying-in shall commence at the time scheduled by CDP on the Settlement Day or the following and successive Market Days.

price of the previous day – the reference transacted price or the reference bid price. If the securities are not obtained, CDP shall have absolute discretion to raise the price bid by 2 minimum bids, as determined by SGX-ST, from time-to-time throughout the Settlement Day until the securities are bought or delivered to CDP.

If the securities cannot be obtained during the Settlement Day, the buying-in shall continue on the following and successive Market Days at 2 minimum bids, as determined by SGX-ST; higher than the buying-in bid price at the close of the Settlement Day or the previous Market Day. Thereafter, CDP shall have absolute discretion to raise the buying-in bid price by 2 minimum bids, as determined by SGX-ST, from time to time throughout the Market Day until the securities are bought or delivered to the CDP. If the securities cannot be obtained by the close of the second Market Day, CDP may require the Short-Seller to procure the securities within the time stipulated by CDP.

SGX will impose a penalty of S$1000 or 5% of the value of the failed trade (whichever is higher) for all buy-ins. A processing fee of S$75 + GST for each failed contract and a brokerage fee of 0.75% + GST of contract value (for the buying-in contract) will be imposed by SGX.

For further information or clarification, please contact your trading representative.


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This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

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Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com