Singapore Government Securities (SGS) - debt instruments in the form of either Treasury bills (T bills) or bonds are finally available to retail investors via atm application from 1st July 2009.
Source: http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_397190.html
Bid for bonds via ATMs
Move allows investors easier access to liquid and safe alternative
By Gabriel Chen
INVESTORS will be able to apply for Singapore Government Securities (SGS) - debt instruments in the form of either Treasury bills (T-bills) or bonds - by using ATM machines from tomorrow.
The securities ride on the strong credit strength of the Singapore Government and have, arguably, not been very accessible to retail investors.
Up to now, retail investors have only had exposure to them through money market funds, primary dealers like the three local banks, or secondary dealers, such as stockbrokers.
With effect from tomorrow, individuals can apply for SGS via all DBS Bank, United Overseas Bank and OCBC Bank ATMs.
With the changes - officially announced by Monetary Authority of Singapore chairman Goh Chok Tong last Friday - investors can head to ATMs to submit bids once an auction announcement has been made on the SGS website (www.sgs.gov.sg).
The bids can be either competitive or non-competitive.
A competitive bid is one where a bidder has to specify the price he is willing to pay for the securities and is allocated securities if his bid is high enough in comparison to others. A non-competitive bid is one where the bidder does not specify a price.
The price is expressed in terms of percentage yield.
Similar to an Initial Public Offering (IPO) application, investors will need a valid individual Central Depository (CDP) account number. Minimal administrative fees will also be charged by CDP.
Investors can sell SGS via the three local banks.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment