SINGAPORE – With Singtel announcing on April 7 that it would be transferring its special discounted shares (SDS) to holders’ direct ownership, it opens the doors for the some 615,000 Singaporeans to manage their investments in the telco flexibly.

The move ends the Central Provident Fund’s role as the trustee of their SDS, subject to Parliament passing the CPF (Amendment) Bill in May.

SDS holders will be able to sell their shares in full for cash from April 8.

But they also have the flexibility to sell them at a later time, based on Singtel’s financial performance in the future.

Of these 615,000 SDS holders, about 75 per cent do not own other Singtel ordinary shares. This would mean a sizeable pool of shareholders aged 50 and above who may not be familiar with trading the company’s stock.

SDS holders now have the flexibility to either sell their shares for cash or hold on to them.

The median shareholder who decides to cash out will enjoy a windfall of around $6,800, based on the share price of $5 as at April 1.

Those who hold on to their shares will receive them in their Central Depository (CDP) accounts from Nov 21, according them full and direct ownership of Singtel shares.

As a direct shareholder, they would be able to participate in Singtel’s annual general meetings, and are entitled to receive dividends from the company.

In December 2025, Singtel paid out an interim dividend of 8.2 cents per share for the half year ended Sept 30, up 17 per cent from the 7 cents payout in the previous year.

A median SDS holder owns 1,360 shares, which would have earned $111.52 in dividends.