Securities Lending
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.
How soon after the opt out can I opt back in to the program?
Almost immediately, there is no cap on the number of times a user can opt in/ opt out of the lending program as of now.
Will market volatility have an impact on my lent securities?
Yes, if the share price decreases while you own the shares but are lending them out, the value of your position will decrease.
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 ...
Will I get dividend on the lent securities?
Dividends will initially be paid out to the borrower, then remitted to DriveWealth to be credited back to the user's account
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
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 ...
What will be transferred to the borrower when my securities are lent?
Title and ownership, voting rights of the securities will be transferred to the borrower for the loan period.
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
Can I borrow securities if I participate in the Securities lending program?
No, by participating in the Securities lending program and signing the relevant disclosures, you only allow the clearing house to lend your securities and will not be able to borrow any. RBI regulations do not permit brokers to facilitate securities ...
When will I start lending my securities after opting into the lending program?
The instant you opt in to the program, DriveWealth can start to aggregate your holdings and lend it as and when required in the U.S Securities Lending market. However, there is no guarantee that your securities will be lent if you participate in the ...
How can I opt out from Securities Lending?
To change your security lending setting, you can click on"Disable now"under the the'Investing Profile'section of Account Settings on Stockal mobile or web application. Please note, this may take up to 24 hours reflect on the reports.
How can I sign up for Securities Lending?
By default, all users will be signed up for the Securities lending program on accepting the updated Stockal user agreement unless someone opts out. To change your security lending setting, you can click on"Enable now" under the the'Investing ...
Can I sell my shares while I'm participating in the lending program?
Yes, you can sell your shares irrespective of whether they have lent or not. There should not be any impact on selling/ liquidating the shares. The loan can be terminated at any point in time by simply opting out of the program. This can be done by ...
How would securities lending benefit me?
For every security lent, the user will earn an income through interest depending on the type, value and quantity of security lent.
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 ...