SGX Implements Special Trading Counters For Share Buy-Backs

Singapore Exchange Limited (SGX) today announced the implementation of special trading counters (STCs) for share buy-back by listed companies, with effect from 9 June 2000. Shareholders who sell their shares back to the company during the share buy-back exercise through these STCs are eligible for tax credits if they have held these shares for at least 183 days prior to the trade date.

Shareholders need to indicate to their brokers if they wish to sell their shares to the special trading counters in the buy-back market. To qualify for tax credits, shareholders have to submit declaration forms stating that they have held the shares for the stipulated period. These forms have to be submitted to the company within 21 calendar days after the trade date. The declaration forms are available at the broking firms as well as at the SGX website at http://info.singaporeexchange.com/webSTForm.nsf. Upon receipt of the declaration form, the company will issue a dividend voucher to the shareholder.

Listed companies which have their shareholders' approval for share buy-back can apply to the Trading Management Department of Singapore Exchange Securities Trading (SGX-ST) for a special trading terminal to facilitate their share buy-back exercise.

For further information on the tax treatment of share buy-back through STCs, please refer to Inland Revenue Authority of Singapore's (IRAS) press release of 28 February 2000, which is available on their website at http://www.iras.gov.sg.