What is Section 305 of the securities and Futures Act?
Asked by: Rosario Stokes Jr. | Last update: February 13, 2026Score: 4.2/5 (18 votes)
Section 305 of Singapore's Securities and Futures Act (SFA) primarily provides exemptions from prospectus registration for offers of Collective Investment Schemes (CIS) to "relevant persons" (like accredited investors) and sets conditions for these offers, including restrictions on subsequent sales to prevent general public solicitation, while also establishing civil liability for contraventions. Essentially, it allows for private placements of complex investment products to sophisticated investors without full public prospectus disclosure, but with specific rules to ensure investor protection.
What is Section 305 of the SFA?
Sections 275 and 305 of the SFA are exemptions from the prospectus registration requirement under the SFA, and exempt the offeror from registering a prospectus when the offer of securities and securities- based derivatives contracts, and units of collective investment schemes is made to relevant persons.
What is the summary of securities and Futures Act?
Governs the regulation of activities and institutions in the securities and derivatives industry, including leveraged foreign exchange trading of financial benchmarks and of clearing facilities.
What is an accredited investor under the securities Act?
In order to participate in these securities offerings, a potential investor generally must qualify as an “accredited investor.” For individuals, the most common way to be an “accredited investor has traditionally been to either (i) have a net worth of $1,000,000 or (ii) have received an annual income of at least ...
What is a substantial shareholder in the securities and Futures Act?
A “substantial shareholder” is a shareholder who has an interest or interests in one or more voting shares (excluding treasury shares) in the company and the total votes attached to that share, or those shares, is not less than 5% of the total votes attached to all voting shares (excluding treasury shares) in the ...
Differences Between Futures and Forward Contracts
Can a 50% shareholder remove a director?
The Articles may provide a procedure for this; otherwise the statutory procedure must be used. The statutory procedure allows any director to be removed by ordinary resolution of the shareholders in general meetings (i.e., the holders of more than 50% of the voting shares must agree).
What are the 5 rights of shareholders?
Generally, as a shareholder, you have the right to view financial documents, the right to sue for misconduct, the right to vote, the right to participate in the AGM, and the right to pass ownership.
What if I invest $1000 a month for 5 years?
Investing $1,000 per month for 5 years, with potential average annual returns of 6-10% in diversified assets like index funds, could grow your $60,000 in contributions to roughly $70,000 to $80,000, thanks to compounding, though actual returns vary significantly with risk, with S&P 500 historical averages around 10%. Options range from safer high-yield savings to higher-risk stocks, with index funds and ETFs offering diversification through S&P 500 exposure for steady growth.
Who is not an accredited investor?
A non-accredited investor is an investor who does not meet the income or net worth requirements of the SEC. A non-accredited investor makes less than $200,000 annually ($300,000 including a spouse) with a total net worth of less than $1 million when their primary residence is excluded.
What is the 70 30 rule in investing?
The 70/30 rule in investing usually means a portfolio split of 70% stocks (equities) for growth and 30% bonds (fixed income) for stability, offering a balance between aggressive growth and risk management, often suitable for younger investors with longer time horizons. Separately, a different "70/30 rule" for personal finance suggests spending 70% of your income on living expenses (bills, housing, food) and saving/investing the remaining 30% (often split into 20% savings/debt and 10% investing/charity).
What are the 4 types of securities?
The four main types of securities are Equity (ownership like stocks), Debt (loans like bonds), Hybrid (mix of equity/debt like convertible bonds), and Derivative (based on underlying assets like options). These categories represent ownership, borrowing, a blend, and contracts on other assets, allowing investors to gain exposure to different financial markets.
How long after settlement do I get my money from stock?
For example, stocks have a T+2 settlement. If you sell a stock on Monday, it will settle on Wednesday (trade date = Monday). The cash will be available on Wednesday for withdrawal or transfer.
What activities are regulated by the securities and Futures Act?
A1 The types of activities regulated under the SFA are listed in the Second Schedule to the SFA. They are as follows: (a) dealing in capital markets products1; (b) advising on corporate finance; (c) fund management; (d) real estate investment trust management; (d) product financing; (e) providing custodial services.
What income qualifies for accreditation?
To qualify as an accredited investor, you must have over $1 million in net worth, or more than $200,000 in earned income in the past two calendar years, with the expectation of the same earnings.
How much income does it take to be an accredited investor?
According to the Securities and Exchange Commission (SEC), accredited investors have an annual income of at least $200,000 (or $300,000 if married) and a net worth of at least $1 million. This does not include the value of the investor's primary residence.
What are the 7 types of investment?
The 7 common types of investments include Stocks, Bonds, Mutual Funds, ETFs, Real Estate, Commodities, and Cash Equivalents (like CDs or Savings Accounts), offering diverse risk/reward profiles from ownership (stocks) and lending (bonds) to pooled funds (mutual funds/ETFs) and tangible assets (real estate/commodities).
How much is $1000 a month invested for 30 years?
Investing $1,000 a month for 30 years results in total contributions of $360,000, but the final value depends heavily on the average annual return, potentially ranging from around $800,000 at 5% to over $2.2 million at 10% or more, with figures like $1.4 million (8.27% return) and $1.8 million (9.5% return) being common estimates, showcasing significant compound growth.
What are the 4 types of investors?
Types of investors include personal investors, institutional investors, angel investors, and venture capitalists, each with unique roles and objectives. Investors and traders differ in their approach, with investors focusing on long-term gains and traders on short-term profits.
Can a regular person become an accredited investor?
To be accredited, individual people must meet one of the following criteria: Net worth over $1 million, not including primary residence (individual or joint net worth with spouse or partner).
What is the 7 3 2 rule?
The 7-3-2 rule is a financial strategy for wealth accumulation, suggesting it takes 7 years to save your first "crore" (10 million), then 3 years for the second, and only 2 years for the third, leveraging compounding to accelerate wealth growth over time. It's a guideline to build discipline, emphasizing patience, consistency, and starting early, with later stages seeing returns compound faster than new contributions.
How much money do I need to invest to make $3,000 a month?
To make $3,000 a month ($36,000/year) from investments, you need a significant principal, with estimates ranging from around $300,000 to over $700,000, depending on the investment's yield: roughly $300k-$400k for higher-yielding assets (like REITs or dividend ETFs with 4-8% yields) or closer to $720,000 for very stable Dividend Aristocrats with lower yields (around 5%), while real estate might require a large down payment on a property.
What is the 7 5 3 1 rule?
The 7-5-3-1 rule is a personal finance framework for Systematic Investment Plan (SIP) investors, guiding them with four key actions for wealth building: 7 years to stay invested for compounding, 5 core categories for diversification, overcoming 3 emotional biases, and making 1 annual increase to SIP contributions. It promotes long-term discipline, risk management, emotional control, and incremental growth for better investment outcomes in equity mutual funds, as explained in articles from Bajaj Finserv AMC, The Economic Times, and Times of India.
What are shareholders not allowed to do?
Breach of the Articles or any shareholders' agreement
Failure to hold annual general meetings. Failure to provide accounts. Failing to disclose interests in transactions with the company. Registering new members in breach of restrictions within the Articles.
What is the 500 shareholder rule?
The 500 shareholder threshold was a regulatory trigger established by the Securities and Exchange Commission (SEC), mandating public companies to begin reporting when they reached 500 distinct shareholders. As of 2012, this limit increased to 2,000 shareholders following the Jumpstart Our Business Startups (JOBS) Act.
Can a 51% shareholder remove a director?
Yes, a shareholder with 51% of the voting shares generally can remove a director through an ordinary resolution (simple majority vote) at a general meeting, as they hold majority control, but the company's articles, bylaws, or shareholder agreements can specify different procedures or requirements. The process involves passing a resolution at a meeting with more than 50% of shareholders voting in favor, often without needing a reason.