Like I said, if one is a long term investor, after lending out his/her shares, it DOES NOT MATTER whether the share price moves up or plunges subsequently (in the short term).

I will not be surprised to learn that major shareholders lend out their shares. It is a common practice as a matter of fact. 

If you are long term shareholders who are not bothered by the short term ups and downs of the price, why not lend your shares to earn some pocket money? 

This is the reason for the existence of share lending/borrowing service, which is essentially designed for long term investors. 

Borrowing via SGX is only allowed by institutions or syndicates (being large financial or corporate bodies - this is common knowledge).  As an individual borrower or an individual lender, you need to go through your brokerage firm. Whenever you want to short, you can choose available stocks for the purpose of shorting. Some stocks not available has to be requested.  In order words if you want to short BIG, and there is no available stocks for borrowing instantly, then after your request the broker could search for their source and come back to you whether they have the shares or not to lend you.

As for lending, not all brokers accept your offer to lend them shares. Only a few of them do.  As for transparency you would not be able to know who is borrowing or lending to you.  You deal with your brokerage as in stock trading. Only your account is reflected on the number of shares you have borrowed or "loaned" out.

Thanks ekekeg for enlightening. From what u mentioned, the borrowing is done by the borrower via SGX if you opted for a lending account. And if someone borrowed via SGX, you will be notified.

I am assuming that u are registered under some brokerage firm as well. Will your brokerage firm also borrow from your account. And if yes, will they notify you or it's transparent in this case?

thanks bro.... i never a shortist..... so...i dont pay much attention to this.... so lending them is like letting them to play against your position

Hi Novena,

They give you in terms of interests (problably 4 percent a year) on the value of the shares others borrowed.  Please note that it is only when any shares are being borrowed that you earn interests and interest calculation stops when they return your shares. If nobody borrows the shares, you get nothing back.  It is not worthwhile at all from my experience. I would be cancelling the opt-in soon.  I find that people who borrow shares tend to choose counters they think worth shorting and they borrow probably for a month or two.

The only good thing about lending out is that the shortists tend to buy back hurriedly when there is some spike in the shares. This helps to push up your shares.

Hi PensionAlterEgo,

If you opted for a lending account with CDP, then whenever someone borrows from you, the CDP will send you a notice that a number of shares from a particular counter has been loaned out.  Then they weill deduct from your stock balance.  If you haven't received the notice but found your stock balance lesser than your actual purchase, there will be a "tt" below the statement with the number of shares being borrowed by others.

So in my case, I received  notices that 100 lots of my Biosensor shares, 20 lots of Firstlinks, etc and some other shares have been borrowed.

by then, i will shout and buy at 0.48 again.... hee.