Lender
- The Lender can sell, transfer, or withdraw the securities being lent at any time.
- They receive a fee for lending the securities.
- They retain the rights to receive dividends (XD), rights offerings (XR), voting rights (XM), and other entitlements associated with the borrowed securities.
- Lending securities allows the Lender to diversify their investment opportunities and generate additional income.
Borrower
- Borrowing securities provides an opportunity to profit in a declining market.
- It helps in spreading the risk in their investment portfolio.
- Borrowers can place orders to borrow and sell the securities immediately upon receiving confirmation of the borrowing.
Conditions
- Short-selling is allowed only for stocks meeting the criteria set by the Stock Exchange of Thailand (SET), which includes large-cap and sufficiently liquid stocks. The list of eligible stocks can be found on the SET's website.
- The borrowed securities must be fully paid.
- Borrowers must have a credit balance or cash balance account.
- The maximum borrowing period is one year, and the minimum borrowing period is one day.
Recall
- The Lender has the right to recall the borrowed securities in all cases where entitlements are given (e.g., XD, XR, XW).
- However, in the case of XM entitlement, the Lender will not recall the borrowed securities unless the Borrower wishes to exercise voting rights. In such a case, the Lender must provide at least 3 business days' notice.