About 1 in 4 holders of Singtel discounted shares have sold their shares ahead of CDP transfer

Ahead of the planned transfer of Singtel's Special Discounted Shares (SDS) from the Central Provident Fund (CPF) Board to holders' Central Depository (CDP) accounts on Nov 21, about one in four holders have sold their shares.

Singtel and the CPF Board said in a joint update issued on Thursday (Sept 17) that about 180 million, or 25 per cent, of all Singtel SDS shares had been sold as at Aug 31. 

Around 163,000 of the approximately 615,000 SDS holders, or about a quarter, have sold their shares. Of these, more than 60 per cent did not have an individual CDP account.

Support efforts for SDS holders

Since the transfer was announced in April, more than 117,000 walk-in enquiries and transactions have been processed at 36 SingPost branches. 

In addition, the Singtel SDS hotline has received over 15,000 calls.

The Agency for Integrated Care (AIC) has also conducted more than 11,000 home visits to older SDS holders who may not be digitally savvy. 

The CPF board and telecommunications operator also stated that the planned transfer is on track.

What SDS holders need to know 

SDS holders who wish to continue holding their shares do not need to take any action.

Those with individual CDP accounts will have their Singtel SDS shares automatically transferred to their CDP accounts, while those without individual CDP accounts will have their shares transferred to a designated account that will be created in their names.

There is also no need for these SDS holders to open an individual CDP account unless they plan to purchase and trade other securities.

Why the SDS scheme was introduced

The SDS scheme was introduced in 1993 as part of the Government's efforts to give Singaporeans a stake in the Republic's economic success through share ownership.

Singtel was the first company to offer SDS shares when it transitioned from a statutory board to a listed company that year, and remains the only company to offer shares under this scheme.

The CPF Board was appointed as trustee to facilitate the share purchase, as share ownership was still a foreign concept among many Singaporeans at the time.

Today, with stock market trading commonplace, the SDS scheme has met its intent and the trustee arrangement to support share ownership is no longer necessary, CPF said in an earlier statement issued in April.

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