- When do I start earning the lending fee?
- What is the lending rate?
- How is the lending fee computed?
- How will the lending fee be paid?
- How can cheques be replaced if lost or misplaced?
- When do I start earning the lending fee?
The lending fee accrues from the day we lend your securities, until the day they are returned to your securities account.
- What is the lending rate?
Currently, the lending rate is 4% p.a. This rate is subject to regular review, and may fluctuate depending on demand and supply.
- How is the lending fee computed?
The lending fee of each loan is the total fee accrued daily and is based on the following formula:
Lending Fee = Rate % x Loan Value x Days / 365
Where Rate % = Prevailing lending rate
Loan Value = No. of shares x share closing price at end of each day
Days = Loan duration
Example
If the loaned securities are 10,000 XYZ shares and the lending rate is 4%:
Start date of Loan : 1/10/2001 (Effective date)
Return date of Loan : 4/10/2001 (Expiry date)
Closing price on 1/10/2001 = S$10.00 Market Value of Loaned Securities = 10,000 x S$10.00 = S$100,000
Closing price on 2/10/2001 = S$10.20 Market Value of Loaned Securities = 10,000 x S$10.20 = S$102,000
Closing price on 3/10/2001 = S$10.40 Market Value of Loaned Securities = 10,000 x S$10.40 = S$104,000
Daily fee computation
Fee accrued on 1/10/2001 = 4% x S$100,000/365 = S$10.96
Fee accrued on 2/10/2001 = 4% x S$102,000/365 = S$11.18
Fee accrued on 3/10/2001 = 4% x S$104,000/365 = S$11.40
Lending fee = S$10.96 + S$11.18 + S$11.40 = S$33.54
- How will the lending fee be paid?
We pay lending fees on a monthly basis, either credited directly into your bank account under Direct Crediting Service (DCS), or via cheque if you have not signed up for DCS.
You can expect payment on the 10th business day of each month, for example fees earned in January will be paid in February. The lending fee due to you will be reflected in your monthly account statement. For fees earned in January, it will be shown in your February statement.
- How can cheques be replaced if lost or misplaced?
You may call or fax your request to us, quoting your securities account number. The cost of replacing any misplaced, outdated, mutilated or torn cheque is S$2 (excluding GST).
To avoid such hassle, you should participate in DCS, where your lending fees, cash dividends and other cash distributions are credited directly into your designated bank account.
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