Frequently Asked Questions
Securities Lending
Do I need to notify changes in my shareholding according to the requirement in the Companies Act if I am a substantial shareholder participating in securities lending program?
With effect from 1 April 2004, substantial shareholders who take part in securities lending transactions are exempted from the substantial shareholding notification requirements under the Companies Act. However, if you are a director of the company, according to the Companies Act section 165 and 166, you will need to disclose any change in interest in your securities in the company within 2 business days after the change in interest. Do consult your professional adviser on your legal reporting obligations.
Other faq that might help you
- Who can participate in Securities Lending?
- How can I participate as an eligible lender?
- Can I lend my securities which are bought using a CPF investment account?
- How do I check if my securities are eligible for lending?
- Is there a minimum quantity of each security I need to have to be eligible?
- How long will my securities be lent out for?
- How do I know which securities I have lent?
- What is the lending rate I will get for lending my securities?
- How is the lending fee computed?
- How will the lending fee be paid?
- Can I sell my securities even if they are lent out?
- Can I recall my loaned securities?
- Will I still be entitled to corporate actions such as dividends, bonus securities and rights issues?
- Can I use my SBL account to buy securities?
- What is the risk to a lender?
- Do I need to notify changes in my shareholding according to the requirement in the Companies Act if I am a substantial shareholder participating in securities lending program?
- What are the tax implications of securities lending?
- How do I opt-out of Securities Lending?
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