Frequently Asked Questions
Securities Lending
What is the risk to a lender?
One possible risk to a lender is counterparty risk. However, this risk is mitigated in the following ways:
- Lenders only look to Phillip Securities, a reputable financial institution as the borrower;
- Phillip Securities ensures that collateral is provided in favour of the lender. Where securities are on-lent, Phillip Securities collects collateral from the borrower valued at least 105% of the market value of the loan.
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?
- 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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