Bank Negara Malaysia (BNM) issued revised guidelines on securities borrowing and lending (SBL) of RENTAS Securities in early December. The RENTAS System is a real time gross settlement system for the transfer and settlement of high value ringgit denominated interbank funds and scripless securities transactions.
The objectives of the Revised Policy Document are three-fold, namely to:
- provide the regulatory requirements to govern the conduct and obligations of market participants who enter into SBL transactions in respect of the RENTAS Securities;
- assist market participants in understanding and complying with the regulatory framework governing the SBL market; and
- stipulate the terms and conditions, procedures and practices to be observed by market participants in the SBL market.
The revised document applies to licensed banks, licensed investment banks, prescribed development financial institutions and any other person who enters into a SBL transaction in respect of RENTAS Securities.