Products & Services

SCBS places emphasis on providing securities trading, equity offering, and securities underwriting. With the full support of reliable information from the Securities Analysis Division and the Investment Strategy Division, and service access to SCB 's formidable network 1,200 bank branches nationwide, the company is confident of its potential to forge a link between investors and opportunities in various kinds of investment.

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Stock Borrowing and Lending (SBL)

          SBL provides an investment opportunity during market downturn. Investors who expect a decrease in the stock price but do not have that stock in their portfolio, can borrow the stock from SCBS through our SBL service for short-selling in the market. When the stock price decrease to their expected level, investors then buy the stock back to return to SCBS. The “Borrower” will gain profit from the spread between the short-selling price and buying back price. 

          Investors can also enhance the return on investment by lending a stock in their portfolio to SCBS. The “Lender” will receive lending fee while remain their rights and benefits in the loaned stock, e.g. dividend and rights offering.             

          SCBS serves as an intermediary (principal) in the supply of securities borrowing and lending to investors. Eligible lending/borrowing securities are securities listed on the SET100, the TDEX or the ENGY (including ETFs) which are in the Marginable list of the company. 


Benefits of SBL

SBL Borrower
SBL Lender

  • An investment alternative for profit making or hedging against market downturn.
  • Can return the borrowed stock at any time 
  • Borrowing fee based on actual borrowing days and fee as per SCBS announcement. 

  • Increase return in their portfolio at a rate higher than the savings interest rate.
  • Still entitle to receive dividend, right offers and other rights and benefits of loaned stock
  • Can sell or recall the loaned stock at any time under SCBS terms and conditions

SBL Processes


  SBL Borrowing​ SBL Lending​
Start​ 1. Have Cash account/ Cash Balance Account/ or Credit Balance Account
2. Contact investment consultant to sign SBL contract with SCBS
1. Have Cash account or Cash Balance Account
2. Contact investment consultant to sign SBL contract with SCBS
3. Fill in Letter for Offering of Securities Lending
Borrow​ 3. Provide cash collateral at minimum 50% of loaned securities value 
4. Contact investment consultant to borrow securities and short selling
5. Receive SBL confirmation note -Borrowing
4. Receive SBL confirmation note -Lending
Return​ 6. Contact investment consultant to buy back and return Loaned securities
7. Collateral return to portfolio
8. Receive SBL confirmation note -Return
5. Receive SBL confirmation note -Return
Fee​ SBL borrowing fee 5% per annum of loaned securities value (minimum daily fee at Baht 50). The company will deduct from the collateral deposited with the Company every month end or after return the loaned securities   SBL lending fee 3% per annum of loaned securities value. The company will transfer the money to Cash balance account every month end 

 

Conditions

  • Borrowing and lending terms are at call. Borrower and lender can return and recall loaned securities at any time under SCBS terms and conditions 
  • Loaned securities must be settled and free of obligations 
  • Borrower must provide cash as initial collateral at minimum 50% of loaned securities value, and short selling within the borrowing day. Proceed of securities sale will be added to collateral value to provide not less than 150% of loaned securities value, in order to comply with SEC regulations
  • SCBS will calculate the collateral value compared to the loaned securities value in accordance with the closing price at the end of Business Day. Borrower is liable to maintain minimum collateral as per SCBS terms and conditions and SEC regulations 
  • When the securities is loaned, SCBS will provide and segregate the collateral for Lender. Lender is not entitled to redeem or receive any interest from the collateral
  • SBL borrowing and lending fee is calculated daily based on loaned securities value in accordance with the closing price at the end of each business day (starting from the borrowing day,  excluding the day on which the loaned securities is returned)

For more information:
Contact your Investment Consultant or SCBS Call Center 02 949 1999