ADVOKS GLOBAL · KENYA
The Capital Markets (Securities Lending, Borrowing and Short-selling) Regulations
8. Collateral for securities lending and borrowing transactions
Edition: 2022-12-31 · In force
8. Collateral for securities lending and borrowing transactions
(1)A borrower in a securities lending and borrowing transaction shall provide the lender with collateral of at least one hundred per centum of the value of the borrowed securities.(2)The lender in a securities lending and borrowing transaction may require the borrower to provide an additional margin on the collateral provided under subregulation (1).(3)The quality of the collateral required in a securities lending or borrowing transaction may include—(a)cash in Kenya shillings;(b)Government securities; or(c)any other type of security that may be specified by the Authority.(4)The lent securities and the collateral shall be revalued daily and the amount of the collateral held in relation to the lent securities shall be adjusted in relation to the revaluation.(5)Where it is not possible to revalue the lent securities daily, the securities may be revalued on a weekly basis or more frequently as may be required by the Authority and the collateral held in relation to the securities shall be adjusted in relation to the revaluation.