Mechanics

Trading of Securities

For trading convenience, you may execute your trades through your
ordinary securities trading account. However, your short-sell and
buy-back trades must be communicated to the Trading Representative
(TR) for settlement through the SBL account on the same day when the
trade is done.

Settlement of Securities

Contracts (short sell & buy back) should be settled through your SBL
Account so that borrowed securities will be delivered on the due date of
the sell contract.

Collateralizing of Short Positions

Collateral must be deposited latest by the following day of the short sell
trade.

The initial and maintenance margin ratio (MR) must be maintained
above 130% of the market value of the borrowed and sold securities at
all times.

Borrowing of Securities

The list of available securities and their respective quantity available for
borrowing may differ from time to time. An updated list may be obtained
from your TR or by logging into POEMS online.

You may borrow the securities online through POEMS or alternatively,
you may contact your TR or SBL Desk to borrow and confirm the status
of your loan request.

Return of Securities

When you buy-back the securities you do not automatically return the
borrowed securities. To return the borrowed securities, you must either
return them via POEMS Online (STOCKS > SBL >Script Returning) or
inform your TR of your request to return.

Interest charges will be computed as follows

- If securities are returned on purchase due date or earlier, interest will
cease to accrue on the purchase due date

- If securities are returned after due date of purchase, interest will
cease to accrue two days after the return is done

To know more about interest charges please click here

Margin Ratio

Margin Ratio (MR) = Total Market Value of Collateral* / Total Market
Value of Borrowed & Sold Securities

Collateral includes:

1. Sales proceeds from short-sell trades

2. Cash pledged into SBL account

3. Securities pledged into SBL account

You may want to note that only securities prescribed by
Phillip Securities Pte. Ltd will be accepted as collateral and
these acceptable securities will be assigned a collateralized value.

Margin Calls

A margin call will be made if the market value of the borrowed and sold
securities increases.

If the increase causes your margin ratio to fall below 130% (but above
120%), you will be informed through your Trading Representative (TR)
and you will have to satisfy the margin call within 2 market days.

If the margin ratio drops below 120%, you will have to satisfy the call on
the same day to restore the margin ratio to 130% of the borrowed and
sold securities.