The bilateral lending and borrowing process is based on a legal agreement between the lender and the borrower, which defines the rights and obligations of both parties. Based on this agreement, Muscat Clearing and Depository (MCD) temporarily transfers the ownership of securities from the lender to the borrower and manages the collateral, while the borrower is obligated to return the securities according to the agreed terms and schedule.
Lending and Borrowing Agent Registration
A Lending and Borrowing Agent is a licensed entity operating in the securities market, authorized by the Financial Services Authority to conduct brokerage, custodian, portfolio management, investment fund management, or any other activity approved by the Authority to arrange and facilitate securities lending and borrowing operations in accordance with the Lending and Borrowing Regulations.
Conditions and Requirements
Obtain a valid license certificate from the Financial Services Authority.
Register with Muscat Clearing and Depository by completing the application form and paying the registration fee.
Provide MCD with a bank account for collateral settlement procedures.
Required Documents
Copy of the Lending and Borrowing Agent license.
Copy of Muscat Stock Exchange (MSX) approval.
Copy of the commercial registration and authorized signatories.
A Lender is an entity or individual qualified to lend eligible securities owned by them or legally authorized to lend them, in accordance with the Lending and Borrowing Regulations. Eligible lenders include government entities, securities market participants, Takaful Insurance Companies, financial institutions licensed by the Central Bank of Oman, the Social Protection Fund, investment funds with assets exceeding OMR 1 million, and high-net-worth individuals and their families.
Conditions and Requirements
The lender must be qualified under the Lending and Borrowing Regulations.
Submit the lender registration form.
Provide MCD with bank account details for collateral settlement procedures.
Pay the annual registration fee (OMR 200).
Required Documents
Approved lender registration form.
Identification documents for individual lenders.
Commercial registration and authorized signatories’ IDs for institutional lenders.
A Borrower may be a market maker, liquidity provider, liquidity fund, or any other entity licensed by the Financial Services Authority in accordance with the Lending and Borrowing Regulations.
Conditions and Requirements
Must be a CMA-licensed entity (e.g., market makers, liquidity providers, liquidity funds).
Submit the borrower registration form.
Provide MCD with bank account details for collateral settlement procedures.
Pay the annual registration fee (OMR 200).
Required Documents
Approved borrower registration form.
Commercial registration and authorized signatories’ IDs.