Rent Stocks
Stock renting and Borrowing
Corporate actions are handled differently based on their type.
• For dividends, the amount is collected from the borrower and passed on to the lender at the time of book closure/record date.
• For stock splits, the revised quantity is debited from the borrowers account and passed on to the lender during settlement.
• For the rest of the corporate actions the contracts are compulsorily foreclosed for settlement and the renting fee is adjusted on pro-rata basis by exchange and credited back to the borrower and debited from the Lenders account.
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