- The programme allows you to lend your shares to a borrower
- In turn, you will receive a lending fee (exact fee for a particular stock can be found on SGX’s website)
- There are specific criteria to meet for your holdings to be added to the lending pool
- Even if your shares are lent out, you will still be eligible for the economic benefits of share ownership (such as bonuses, rights issues, and dividends)
- One downside to SBL
As investors of stocks, we make money through capital gains and dividends.
However, did you know there’s another way to get some side income through the Singapore shares we hold under our CDP accounts?
Enter the Singapore Exchange’s Securities Borrowing and Lending (SBL) programme…
Source: Giphy
TL;DR: What Investors Should Know About SGX’s Securities Borrowing and Lending (SBL) Programme
Here’s a summary of the SGX SBL programme:
