Document background
The Stock Lending Agreement serves as a fundamental legal framework for securities financing transactions in the United Arab Emirates financial markets. This document is essential when financial institutions, investment firms, or other eligible entities wish to engage in securities lending and borrowing activities under UAE law. It encompasses crucial elements such as transfer mechanisms, collateral arrangements, corporate action treatments, and default procedures, all aligned with UAE Securities and Commodities Authority (SCA) requirements and relevant federal legislation. The agreement is particularly relevant for entities seeking to enhance portfolio returns, facilitate short selling, or cover settlement failures, while ensuring compliance with local regulatory requirements including SCA Decision No. (48) of 2013 and associated regulations.
