SGX Lending Programme

Hi all,

Just curious anyone has sign up to lend shares to SGX?
I figured that if most of the folks here are value investors, the holding period will definitely be long in nature, does it not make sense to loan the shares to SGX?

It pays 4% per annum if your shares get loaned, and I believe you still get your dividends.
You can still sell your shares anytime you want.

Sounds good to me.
Anyone tried this before?

(04-10-2013, 03:54 PM)kagemusha Wrote: Hi all,

Just curious anyone has sign up to lend shares to SGX?
I figured that if most of the folks here are value investors, the holding period will definitely be long in nature, does it not make sense to loan the shares to SGX?

It pays 4% per annum if your shares get loaned, and I believe you still get your dividends.
You can still sell your shares anytime you want.

Sounds good to me.
Anyone tried this before?

This is a non-brainer, just go and sign up for it. Only problem is that take up rate is very very low. Refer to pass thread on this topic.

I merge the new thread into this old thread. Useful info available from the old thread.

kagemusha Wrote:Hi all, Just curious anyone has sign up to lend shares to SGX? I figured that if most of the folks here are value investors, the holding period will definitely be long in nature, does it not make sense to loan the shares to SGX? It pays 4% per annum if your shares get loaned, and I believe you still get your dividends. You can still sell your shares anytime you want. Sounds good to me. Anyone tried this before?

Lending theough your broker house may stand a better chance for it being borrowed as they are more active in seeking borrowers.

I'm on the Shares Lending program.

Very few shares are being borrowed so I receive only a few Dollars a month.
Yes, you'll still receive the dividends and also can sell the shares but CDP also states that if the lender sells the shares and the CDP cannot buy back the shares for you on time then the lender can be charged for short selling. I'm NOT happy with this statement otherwise it's a good program.

I was hoping that someone borrows my S-Chips and later on the shares get suspended. In that case the borrowers, ( Short-Sellers) will have to pay me very month because they can't buy the shares to return me but so far this has not happened.

have been on the program for like 8 years
my shares never got borrowed before, I wonder why

(04-10-2013, 05:54 PM)ForeverAlone Wrote: have been on the program for like 8 years
my shares never got borrowed before, I wonder why

There was a post from Mr. d.o.g, post #10 of this thread has an answer to your question.

how come sgx don't want to tap on this resources by lowering the borrowing costs to the borrowers and by doing so, lenders like us can participate isn't it?

is it sgx is just too greedy on fattening its own spread margin as a middle man and it results in inability or too costly for borrowers to borrow scrips thr this cdp ledning scheme?

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(04-10-2013, 05:54 PM)ForeverAlone Wrote: have been on the program for like 8 years
my shares never got borrowed before, I wonder why

I think u can put a white elephant on this scheme..

how do i sign up to lend shares?

(04-10-2013, 11:25 PM)investingsgx Wrote: how do i sign up to lend shares?

A browse in SGX web site will reveal all the detail. Look for "Securities Borrowing & Lending"

http://www.sgx.com/wps/portal/sgxweb/hom...rities/sbl