Lenders to receive divi at SEBI 11 October 2010Mumbai Reporter: Ben Wilkie
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The Securities and Exchange Board of India has said the lenders are now eligible to receive the dividend income on lent securities.
The regulator said the move was made to improve the development of the securities lending market.
SEBI announced partial modification to its earlier circular of 31 October 2008, to read, "The dividend amount would be worked out and recovered from the borrower on the book closure / record date and passed on to the lender."
The other provisions, as specified in its previous circular of 20 December 2007, on "short selling and securities lending and borrowing" framework" will continue to be applicable, SEBI said in the circular.
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