Securities Borrowing and Lending

  • KPEI’s Securities Borrowing and Lending Members are Clearing Members or Custodian Banks that have fulfilled the requirements to become APME.

  • Investors, both institutional and individual, may contact a Clearing Member or Custodian Bank that participates in KPEI’s Securities Borrowing and Lending services.

  • Securities Borrowing and Lending has the function to assist the settlement process of stock exchange transactions in the Regular Market. It also has other functions, namely, short selling and margin trading strategy, as well as additional income on long-term transactions for lender.

  • The Market Window for Regular Securities Borrowing and Lending is from 09.00 to 12.00 (first session) and from 16.00 to 17.00 (second session).
    The Market Window for Bid Offer Securities Borrowing and Lending is from 09.00 to 12.00 (first session) and from 13.30 to 17.00 (second session).

     

     

    • Regular Securities Borrowing and Lending: The borrower will be charged a borrowing fee of 15%/360 x Closing Price x Volume, added with a Flat Fee of Rp 20,000
                                                                           The lender will receive a fee of 12%/360 x Closing Price x Volume
    • Bid Offer Securities Borrowing and Lending: The borrower will be charged a minimum fee of 5% and a maximum of 20%
                                                                             The lender will receive a fee of minimum 4% and maximum 17%
  • Borrowers placing collateral to KPEI in the form of Time Deposits, Bank Guarantees, Cash (IDR and USD), Stocks and Bonds.
    Lenders are not required to place collateral.

  • The minimum loan time is 1 day and the maximum is 90 days.

    • The borrowers carry a risk should they fail to return the stocks in time. The amount is calculated as penalty (NRC) of 125% x Highest Price (at T0 or T1) x Volume.
    • The lenders: 
      - Will lose the rights if the lending takes place on the Recording Date for Voluntary Dividends (such as Annual General Meeting of Shareholders).
      - The loaned stocks will be changed to the form of cash, equal to the NRC calculation. This will change the recording of the portfolio.

     

     

     

     

     

  • Clients cannot process the direct securities borrowing and lending. Instead, they are represented by their Securities Company or the relevant investor.

  • All stocks that are listed on the Indonesia Stock Exchange can be loaned