Does the lender retain ownership of the securities during the lending period?
No, the legal ownership is transferred to the borrower during the lending period. However, the borrower is obligated to return the same securities or their equivalent at the end of the agreement.
What benefit does the lender receive?
The lender receives a return (interest or fee) agreed upon in advance, in addition to improved liquidity management.
How does MCD ensure the safety of the process?
All transactions are conducted through the central depository system and are fully supervised by Muscat Clearing and Depository and the Financial Services Authority, with financial collateral and precise documentation of contracts, durations, and fees.
What is the duration of the lending period?
The duration is determined by mutual agreement between the two parties and may be short or medium term, within the regulatory limits.
What types of securities can be lent?
Only eligible securities that are free from any financial encumbrances or legal restrictions that prevent their transfer or trading can be lent.
What types of securities can be lent?
Risks are minimal, as the system ensures sufficient collateral and requires the borrower to return the securities or their equivalent. MCD also plays a regulatory and supervisory role to ensure safe and compliant operations.
