What are responsibilities of bookrunners when perpetuals fail?
SHOULD banks be held responsible for the fixed income securities that they underwrite? Justice Aedit Abdullah implied as much at the Hyflux hearing last week when he gave some broad hints that DBS Bank, the bookrunner for the perpetual capital securities and preference shares (PnP) issue, ought to be bearing some of the costs of the advisers' fees in Hyflux's rescue negotiations.
It was not right for retail investors to be marketed an investment and then left without advice when things go wrong, he said. Investors should receive adequate financial and legal advice, and these advisers should be paid, he added.
Water company Hyflux is undergoing a liabilities re-organisation process following a weakening of its finances, and Middle Eastern utility provide…
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Hong Kong regulator to probe PwC auditing role over Evergrande
US: S&P, Dow open flat as Middle East jitters ease, Netflix weighs on Nasdaq
DBS puts 46 retail units, HDB shops on market for S$210 million
China to facilitate Hong Kong IPOs and expand Stock Connect
Global equity funds see surge in outflows as rate cut hopes fade
Gazelle Ventures makes cash offer for No Signboard shares at S$0.0021 apiece