Thursday 12 March 2009
SGX lowers age limit to open CDP account
The Singapore Exchange (SGX) has lowered the minimum age limit for opening a Central Depository (CDP) account to 18 years, following a move by the Accounting and Corporate Regulatory Authority (Acra) to lower the minimum contractual age. With effect from March 9, those 18 years old and above can apply for a CDP account at SGX customer service counters. But an undischarged bankrupt will be disqualified from applying.
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SGX lowers age limit to open CDP account
By LYNETTE KHOO
12 March 2009
The Singapore Exchange (SGX) has lowered the minimum age limit for opening a Central Depository (CDP) account to 18 years, following a move by the Accounting and Corporate Regulatory Authority (Acra) to lower the minimum contractual age. With effect from March 9, those 18 years old and above can apply for a CDP account at SGX customer service counters. But an undischarged bankrupt will be disqualified from applying.
'Individuals of age 18 years and above who wish to invest in the stock market can now open a direct securities account with CDP, or a sub-account with a Depository Agent,' said a spokeswoman at Central Depository Pte Ltd (CDP). 'These individuals are also able to open Trading Accounts with securities trading members of SGX-ST, subject to the individual eligibility requirements imposed by securities trading members.' The government has sought to encourage entrepreneurship early, and Acra has lowered the minimum age at which most contracts are binding and enforceable from 21 to 18 years. This regulatory change took effect on March 1. Accordingly, the minimum age to be a director of a company or a manager of a limited liability partnership has been lowered to 18 years from 21.
With the change, those aged 18 and above can register a business name, be a company director, and form companies or limited liability partnerships. There are exceptions to this age limit. They include contracts for sale, purchase, mortgage, assignment or settlement of any land; contracts for a lease of land for more than three years; and contracts for sale and transfer or pledge of a minor's beneficial interest under a trust.
The change in age limit will also not apply for contracts for settlement of any legal proceedings or action where the minor is considered to be a person under disability on account of his age, or of any claim arising from these legal proceedings or action, according to Acra. The CDP has aligned its current practices to the amendments in the Civil Law Act. SGX said it encourages all investors to understand and be familiar with the workings of investing in the stock market.
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