The Capital Markets (Securities Lending, Borrowing and Short-selling) Regulations

11. Rights and obligations of the borrower

Edition: 2022-12-31 · In force

11. Rights and obligations of the borrower

A borrower in a securities lending and borrowing transaction shall—

(a)have full legal title of the securities he or she has borrowed;

(b)where the collateral provided is in the form of securities, continue to receive all economic benefits associated with the securities given as collateral including dividends or interest; and

(c)pay the securities lender such amount as may be needed to ensure that the collateral provided remains sufficient at all times.

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Source: Kenya Law