Buying Government Securities

Many people have asked how they can buy Government Securities. I asked Adrian Tan to do some research. Here are his findings.

DO-IT-YOURSELF
http://www.sgs.gov.sg/pub_guide/faqs/publ_faqindinvestors.html
Go to “PURCHASING AND SELLING SGS” section.

To summarise, you have to open an account with a primary dealer (these include ABN AMBRO, DBS, OCBC and UOB) or a secondary dealer. “Banks, merchant banks and stockbroking firms are among the approved Secondary Dealers”.

“With this account, you can purchase SGS over the counter with these banks.”

If you follow this route, make sure you ask about the commissions and other charges that are applicable.

If you face difficulties, say finding the right people in the bank to talk to, I suggest you tell MAS about your experiences.

ELECTRONICALLY (fundsupermat)

If you have have an investment account with fundsupermart, you may invest in SGS bonds using this existing account. If you have never opened an investment account, you will be required to open one before you can invest in SGS bonds https://secure.fundsupermart.com/main/acl/registerAccount1.tpl

You are only allowed to purchase SGS Bonds via this platform using cash

'For SGS Bond, the charges that you will incur is 0.1% processing fee and 0.1% annual custody fee. The 0.1% processing fee will be deducted from your nominal value upon purchasing and the remaining 0.1% annual custody fee will be deducted yearly from your coupon payment i.e. 0.05% semi annually as the coupon payment will be paid out every 6 months. Please be noted that no charges will be incurred when you sell the SGS Bonds.

Please refer to FAQ over the website:
http://www.fundsupermart.com/main/faq/sgs_faq.tpl?id=6546
http://www.fundsupermart.com/main/faq/sgs_faq.tpl?id=910
http://www.fundsupermart.com/main/faq/sgs_faq.tpl?id=3826”

Author's note -- You have to be personally satisfied that you are comfortable dealing with fundsupermarket.com or its related entities. Mr Tan Kin Lian or Adrian Tan are not making any representations about fundsupermarket.com or its related entities.