Regulatory Alerts2024-01-01
Lending, Borrowing and Short Selling Directive 2024
Issued by the Registrar of Financial Institutions under the Securities Act, this 2024 Directive establishes a comprehensive regulatory framework for securities lending, borrowing, and short selling transactions. It mandates written lending agreements, requires borrowers to provide collateral valued at least 100% of the borrowed security, and restricts short sales to covered transactions executed by authorized financial institutions. Market participants must submit monthly transaction reports, maintain short positions below prescribed thresholds, and face monetary penalties of up to K50 million for non-compliance.
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