The Capital Markets (Securities Lending, Borrowing and Short-selling) Regulations
2. Interpretation
2. Interpretation
In these regulations, unless the context otherwise requires—"lending agent" means a third party who is not a party to a securities lending agreement but who provides support services to securities lenders including the monitoring of loans, the negotiation of lending fees or rebate rates, and the management of collateral;"lending agreement" means a written securities lending contract executed by both the securities lender and borrower;"lending fee" means a fee charged by a securities lender to the borrower for the loan of securities under these regulations;"margin" means the minimum amount of collateral required in a securities lending transaction above the value of the loaned securities as specified in the lending agreement;"primary regulator" means the regulatory agency primarily responsible for regulating the business of the person;"rebate rate" means part of the interest earned by the collateral held by the securities lender that is remitted to the borrower where the collateral is in the form of cash;"regulated person" has the meaning assigned to it under the Act and includes pension funds, insurance companies, investment funds, exchange-traded funds and commercial banks;"securities lending" means the temporary transfer of securities from a lender to a borrower with the concurrent written agreement to return the securities either on demand or at a future date;"short position" means the net investment position in a security in which the security has been borrowed and sold but not yet replaced; and"short sale" means any sale of a security which the seller does not own at the time of the sale.Source: Kenya Law