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25 Aug 2020  (452 Views) 
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Monetary Auth of Singapore


MAS should take the responsibility - rights issue for Sembcorp Marine
 was asked for my view about the right issue of Sembcorp Marine. 

I saw a document from the sole financial adviser, lead manager and underwriter, DBS comprising of 107 pages and 32 pages of appendices, totaling 139 pages.

The investor is required to read the 139 pages, and to consult their adviser, before deciding whether or not to take up the rights issue.

What are the parts played by the Monetary Authority of Singapore (MAS), the Secruities Industry Council and the Singapore Exchange on this matter?

MAS - A copy of this offer document ...... has been lodged with the MAS ... etc. The MAS assume no responsibility for the content of this of this (document) ...

The SGX Securities Trading assume no responsibility for the correctness or accuracy of any of the statement made ....

I find the above statements to be nonsensical. If these agencies do not assume any responsibility, why are they asking the sole financial adviser to lodge the documents with them?

I prefer the statements to read: 

The MAS and the SGX-ST have examined the documents and reviewed the information with the sole lead manager and are satisfied that they fairly represent the financial position of the company to the retail investors. However, the MAS and SGX-ST wish to point out that investments has its risk and the MAS and SGX-ST cannot be held responsibility for any losses suffered by the investors for events beyond their control or for any oversight that might occur in spite of their diligence.

If the retail investors are expected to carry out the above due diligence before making the investment, surely it would be possible for the above agencies, with access to finances and professional advice, to carry out the work? The cost can be charged to the sole financial adviser, who earns a large professional fee for the project (i.e. the rights issue) anyway.

We must get away from the irresponsible approach for public bodies to avoid taking responsibility for their duty - for which they earn high salaries. 

Tan Kin Lian
 


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