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Securities Borrowing and Lending (SBL)

Definition


A broker facilitates securities borrowing and lending transactions between qualified customers in order to cover short selling of credit balance accounts.


Lender


Qualifications

  • Holding Cash account.
  • Paid-up shares of stocks in SET 100 Index.


Shares lending and borrowing allocations


Securities lending

  • SBL automated platform conducts borrowing / lending of shares for allocations by matching price and time priority from 9 a.m. to 5 p.m. on business days.

"Previously all securities available in the Lender's portfolio must be lended, now the lender can choose any securities in the portfolio to be lended with written offering advice to the Company and effect is to be on the next business day. Thereof, with effective from December 1, 2009 onwards until further change notice."

Screening of lender

  • The electronic system gives priority to any transaction with the least number of lenders

Borrower


Qualifications

  • Credit Balance / Internet Credit Balance accounts

Conditions of Securities Borrowing to Cover Short Selling

  • Borrowing transaction must be made before trading for short selling transaction via credit balance account.
  • Short selling is allowed for only equities in SET100 Index and Marginable Securities Listed under kt-zmico's coverage.
  • Price offer for short selling must not be lower than the last price (SET's requirement) at the time being.
  • Borrowing by board lot only.
  • Borrowing transaction must not exceed the borrower's purchasing power.
  • Minimum value of the borrowed securities in the main board is Bht. 100,000.- , in big lot is 1,000,000.-
  • Transaction time is valid from 9 a.m. to 5 p.m. on any business day.
  • Unable to borrow stocks while the market sign posting (XD, XR, XW).  Stocks borrowed before such period must be returned lately at least 1 business day.  

 

Borrowing/Lending periods

  • At Call basis : The Lender must advise the "SBL Center" to call back of securities before 12.00 p.m. of the business day, then the effect will be on the next business day. In case of advice sent after 12.00 p.m. of the business day, it shall deem that the Company receives such advice on the next business day. Thereof, the Company may change the rule at the appropriated consideration and time.
  • Terms - 2 Weeks, 1 Month, 2 Months

 

Type of Lender

  • customer can choose to lend with the conditions of At Call or Term.
  • Institutional investors are under At Call only.

Return of Borrowed Securities


Lender calls the securities back.

  • Marketing officer must notify the SBL Center within 11.00 a.m. on the required date.
  • For "At Call" transaction, in case the lender of the re-borrowing securities is not available, the SBL Center will notify the Marketing officer within 12.00 p.m. in same day and then the Marketing officer must also notify the customer to buy-in before the market closed.
  • "Term" transactions can literally be recalled at maturities.


Borrower return the securities

  • For "At Call", borrower is able to return borrowed securities before 5.00 p.m. every business day.
  • The called transaction will be effected on the business day next to the notified date.  If those are the purchased securities to cover the short selling, it will be effected on the due date only.

Price Evaluation and Collateral Maintenace

  • The Lender will be provided collateral at 100% of market value of lending securities. The company will maintain such collateral for the lender in segregated “account for clients” until the end of lending period. The lending securities will be marked to market every end of day.
  • Marked to Market (MTM) for borrower.

Book Closing on the Borrowing Securities


Lately, at least 1 business day, before the date of the market sign posted (XD, XR, XM, XW) for the following book-close, the borrower must return the borrowed securities to the lender without delay.

  • Exercise Dividend
  • Exercise Right
  • Exercise Meeting
  • Change in Par value

Lending/Borrowing Fees

  • Fee is effective from lending/borrowing date (T) until maturity date, including weekend and holidays.
  • Formula for SBL transaction on daily basis :

    Lending/Borrowing Fees = (Number of borrowing securities X market price X lending/borrowing rate) ÷ 365 days

Terms ( 365 days )
Main Board
Big lot Board
Lender
Borrower
Borrower
At Call
N/A
N/A
N/A
Term
N/A
N/A
N/A

* Rates are subject to have any change when appropriated.

More information contact

Securities Borrowing and Lending Department [SBL]
Tel : 02-6955760-1
E-mail : sblcenter@ktzmico.com


KT ZMICO SECERITIES COMPANY LIMITED
16st Floor, Liberty Square Bldg;
287 Silom Road, Bangrak, Bangkok 10500, Thailand.
Tel : (66-2) 695-5000
www.ktzmico.com

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