About one in four holders of Singtel’s Special Discounted Shares (SDS) have sold their shares ahead of a planned transfer from the Central Provident Fund (CPF) Board to individual Central Depository (CDP) accounts.
As at Aug 31, around 180 million Singtel SDS, representing about 25 per cent of all such shares, had been sold, according to a joint update from Singtel and the CPF Board.
Around 163,000 of the approximately 615,000 SDS holders have sold their shares. More than 60 per cent of those who sold did not previously have an individual CDP account.
The transfer of the remaining shares is scheduled for Nov 21. Holders with existing individual CDP accounts will have their shares automatically transferred there, while those without one will have a designated CDP account created in their names.
SDS holders who want to retain their shares do not need to take any action before the transfer.
The SDS scheme was introduced in 1993 when Singtel was transformed from a statutory board into a listed company. CPF members were given the opportunity to use their CPF savings to buy Singtel shares at a discount to the company’s listing price.
A second tranche of SDS was offered in 1996, with additional loyalty shares subsequently distributed to holders.
The scheme was designed to encourage Singaporeans to participate in share ownership at a time when investing in shares was less common. The CPF Board acted as trustee for the shares.
With share ownership now more widespread, the legacy trustee arrangement is being phased out. The transfer will allow SDS holders to hold and manage their shares directly under their own names.
Since the transfer exercise was announced in April, more than 117,000 walk-in enquiries and transactions have been handled at 36 SingPost branches, while the dedicated SDS hotline has received more than 15,000 calls.
The Agency for Integrated Care has also conducted more than 11,000 home visits to older SDS holders who may be less familiar with digital services.
SDS holders who choose to sell can continue doing so before the transfer through the available sales channels. The CPF Board said withdrawal conditions for SDS sale proceeds have been waived, allowing eligible holders to receive their proceeds in cash.
The planned transfer marks the end of a decades-old arrangement in which the CPF Board held Singtel’s special discounted shares on behalf of individual shareholders. After Nov 21, holders will have direct control over their SDS and will be able to manage them alongside any other Singtel shares they own.
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