As of August 31, more than one-quarter of holders of Singtel special discounted shares (SDS) have sold their stakes, marking a significant increase from earlier in the year. Approximately 163,000 holders, or 27 percent of all SDS shareholders, have disposed of their shares, compared to about 83,000 holders, or 13 percent, as of April 30. In total, around 180 million SDS units have been sold, representing roughly a quarter of all outstanding discounted shares, according to a Singtel announcement on September 17.

The rise in sales comes ahead of a key event scheduled for November 21, when the Central Provident Fund (CPF) Board will transfer the remaining SDS units directly into the holders’ Central Depository (CDP) accounts. Those already possessing individual CDP accounts will have their shares moved there, while designated CDP accounts will be created for shareholders without an account. Notably, over 60 percent of those who sold shares so far did not have individual CDP accounts.

Introduced in the 1990s, the SDS scheme aimed to encourage CPF members to participate in share ownership during a period when many Singaporeans were less familiar with investing. In May, Parliament approved amendments ending the CPF Board’s role as trustee for the scheme, allowing shareholders who acquired discounted Singtel shares in 1993 and 1996 to directly manage their holdings.

Ahead of the November transfer, Singtel and the CPF Board have actively engaged SDS holders through multiple channels. Notifications were sent by mail in April, and more than 117,000 walk-in inquiries and transactions have been handled at 36 Singapore Post branches across the island as of August 31. Additionally, a dedicated SDS hotline has received over 15,000 calls. The Agency for Integrated Care undertook house visits to over 11,000 elderly SDS holders who may have limited digital access.

SDS holders wishing to retain their shares do not need to take any action before the November 21 transfer. Those considering selling may do so up until November 18 through Phillip Securities’ website, SingPost branches, or designated Singapore Exchange retail brokers. Trading of SDS will be suspended between November 19 and 21 to facilitate the share transfer.

Following the transfer, sellers can continue to dispose of their shares with CPF withdrawal conditions waived for the proceeds, which may be taken in cash. Dividends for holders with individual CDP accounts will be credited to their linked bank accounts, while those with designated CDP accounts will receive dividends and sale proceeds credited to their CPF Ordinary Accounts, though cash withdrawal options will remain available.