How is tax calculated/ deducted from the interest received on the lent securities?
DriveWealth will levy 15% TDS on the interest accrued from loaned securities. Any additional tax (above 15%) will be calculated by Quicko and the report will be shared with the user/ investor as part of the Tax P&L statement
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How will I know the details of my lent securities?
Users will find a new section called ‘Fully Paid Securities Lending Interest Supplement Report’ in the monthly account statement which will provide details such as securities lent, quantity, interest accrued and collateral. This report can be ...
What is Securities Lending?
Securities Lending is a FPSL program which stands for Fully Paid Securities Lending. Opting into the program would mean that your securities will be lent in one or many U.S Securities Lending market and in return, you will be eligible for additional ...
What rights do I hold on the lent securities?
The user can recall, terminate, liquidate or sell the loaned securities at any time for any reason. However, user will not have any voting rights on the lent securities.
What will remain in my possession when my securities are lent?
Every user participating in the lending program will be entitled to dividend income and interest income on the loaned securities
What is the guarantee that my lent securities will be safe?
The borrower's collateral will be used by DriveWealth to make the lender's position whole (i.e., DriveWealth will repay the borrowed securities or equivalent amount to the lender). This collateral will be 2% higher than the share price of the lent ...