TSD's securities lending service delayed
The start of securities borrowing and lending services by the Thailand Securities Depository (TSD) has been delayed next year's third quarter, because a draft of the standard contract for the service is not yet ready.
Pannaporn Sapsomboon, senior vice president of the Business Support Division, said the standard contract, which would contain the rules and methods for using the service, should be completed by the end of next month, after which a bond-lending service would be offered to customers in December. The securities lending service, which was earlier expected to begin this past June, will begin in next year's third quarter instead. Pannaporn said the TSD believed that within one year, the daily volume of securities lending should be about 10 per cent of the total turnover in share trading on the Stock Exchange of Thailand. She said the Government Pension Fund and asset-management firms had expressed interest in increasing supply for the service by allowing some of their stocks to be lent. She said that demand could be higher if some rules, such as taxation and non-resident restrictions, were relaxed.
Piyarat Setthasiriphaiboon The Nation
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