SBL & Short Selling
For more information,
Please contact your investment consultant or he SBL (SBL Desk.)
Tel. 02 836 0225
The borrowing and lending of securities is another option for investors in managing risks and increasing returns on their investment. The customer can borrow securities to short sell and then buy back the securities at a future date, which will create profits in a down market. In the meantime, the lender of securities still receives any dividends or rights from the securities during the course of the loan. The lender and the borrower will be parties to the agreement with the following conditions.
- Lending and borrowing securities must be listed on SET 100.
- Borrowed securities must be securities that have been paid in full.
- The minimum amount of borrowing is 100,000 Baht.
- The borrower and lender must sign an SBL Agreement with the Company before short selling.
- The borrower must have a cash account, cash balance account or credit balance account.
- The lender must have a cash account or cash balance account.
- The duration for borrowing and lending must not exceed 1 year per transaction.
The borrower or lender may borrow or call back the securities at any time.
- Foreign securities and NVDR securities cannot be borrowed or lent for short selling.
- The borrower must provide margin before borrowing securities.
- The office hours for borrowing and lending securities are:
- For normal customers: 09.00 AM to 17.00 PM
- For Biglot transactions: 09.00 AM to 15.30 PM
Benefits for the lender
- The lender will receive increased returns from lending fees, as well as the right receives any dividends
or rights from the securities during the course of the loan.
- The lender can cancel the order to borrow securities by selling securities at any time (in case the
securities have not been borrowed). The lender can call back the borrowed securities at any time
(in case the securities have been borrowed).
Benefits of the borrower
- Increased choice and diversity in investment and generating profits in a down market.
- Immediate trading orders to borrow or sell once the borrowing has been approved.
- Increased strategic trading decisions to generate profits or hedge against risks.