MAS Notice 636 on Negotiable Certificates of Deposit

MAS Notice 636
1 March 2004
Last revised on 15 March 2023*
NOTICE TO BANKS
BANKING ACT, CAP 19
Negotiable Certificates of Deposits
This Notice is issued pursuant to section 55(1) of the Banking Act (Cap. 19)[“the Act”] and relates to the issuance and safekeeping of NCDs and bearer securities. [MAS Notice 636 (Amendment) 2021]
2. This Notice applies to all banks in Singapore that issue, or acts as an authorised
depository for, NCDs or bearer securities.
[MAS Notice 636 (Amendment) 2021]
Definitions
3. In this Notice –
“NCD” means negotiable certificate of deposits; [MAS Notice 636 (Amendment) 2021] “securities” has the same meaning as in section 2(1) of the Securities and Futures Act (Cap. 286). [MAS Notice 636 (Amendment) 2021]
4. The expressions used in this Notice shall, except where expressly defined in this Notice or
where the context otherwise requires, have the same respective meanings as in the Act.
5. A bank1
issuing an NCD must do so in minimum denominations of S$100,000. To avoid any doubt, where a bank issues an NCD denominated in a foreign currency, the minimum denomination will be the foreign currency equivalent of S$100,000. [MAS Notice 636 (Amendment) 2021] 1 Wholesale banks should also refer to the Guidelines for Operation of Wholesale Banks on the conditions for the issuing bonds and NCDs in Singapore.

2
6. [Deleted by MAS Notice 636 (Amendment) 2021]
7. [Deleted by MAS Notice 636 (Amendment) 2021]
Authorised Depositories
8. A bank must lodge every NCD and bearer security that it issues with any of the
following authorised depository for safekeeping:
[MAS Notice 636 (Amendment) 2021]
(a) a bank in Singapore;
[MAS Notice 636 (Amendment) 2021]
(b) a merchant bank in Singapore;
[MAS Notice 636 (Amendment) 2021]
(c) the Depository as defined in section 81SF of the Securities and Futures Act; [MAS Notice 636 (Amendment) 2021] (d) a depository under the Euroclear system operated by Euroclear Bank S.A./N.V.; [MAS Notice 636 (Amendment) 2021] (e) a depository under the Clearstream system operated by Clearstream Holding AG or its subsidiaries; [MAS Notice 636 (Amendment) 2021] [MAS Notice 636 (Amendment) 2023] (f) any other depository as the Authority may approve.
9. This Notice shall take immediate effect on 1 March 2004.
*Notes on History of Amendments

1. MAS Notice 636 (Amendment) 2004 with effect from 25 May 2004.
2. MAS Notice 636 (Amendment) 2021 dated 28 June 2021 with effect from 1 July 2021.
3. MAS Notice 636 (Amendment) 2023 dated 15 March 2023 with effect from 16 March 2023.