Marginable / Non-marginable List:
| Q1 What is Share Margin Financing? |
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Share Margin Financing is a facility that allows you to increase your financial power and boost your investments in stocks and shares. All you need to do is to place either cash and/or marginable securities as collateral for the credit facility applied for.
| Q2 How much collateral must I place? |
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You only need to place a minimum initial cash deposit of S$5,000 or S$10,000 worth of marginable securities.
| Q3: How much can I buy? |
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You may buy up to 3.5 times the amount of cash deposit or 2.5 times the amount of marginable securities.
| Q4: What shares can I buy or pledge as collaterals in the Share Margin Financing account? |
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You may buy or pledge most of the securities and warrants (with more than a year to expiry) listed on the
Singapore Exchange and more than 100 securities listed on
Bursa Malaysia.
Q5:
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Can I buy foreign currency denominated shares and settle in that foreign currency? |
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You may only buy foreign currency denominated shares listed on the Singapore Exchange or Bursa Malaysia, subject to L&T's marginable securities list. Settlement must be in Singapore dollars at L&T's prevailing board rates.
Q6:
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Do I enjoy Interest Free Period? |
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You will enjoy 10-calendar days interest-free financing commencing from the due date of any purchase. Interest will commence from the 11th day at the prevailing interest rate of 6% p.a., and subject to change from time to time.
Q7:
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Can I drawdown in my Share Margin Financing account to pick up shares purchased in my cash trading account?
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Yes, you must inform us latest by the due date of the purchase contract. Margin percentage must be at least 140% after taking in the value of the purchases and interest is payable immediately.
Q8:
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How long does it take to open a Share Margin Financing account? |
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Share Margin Financing account will be opened within 2 working days from the date you sign the margin documents. You may commence to trade upon deposit of cash and/or transfer of marginable securities into your margin account.
Q9:
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What is the margin percentage to be maintained? |
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You must maintain a margin percentage of at least 140%. No new purchases are permitted unless additional collateral is furnished to bring the margin percentage to not less than 140%.
The margin percentage is computed as follows:
Definition:
Equity refers to the market value of share collateral + market value of shares financed by & custodised with L&T + (market value of outstanding purchase contracts - market value of outstanding sales contracts)
Total Amount Financed is the amount of financing utilised + outstanding purchase contracts + interest accrued + all other related expenses - cash collateral - outstanding sales contracts.
| Q10: |
Can I withdraw cash from my Share Margin Financing account? |
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You may withdraw cash when you sell your shares or when there is a credit balance in your account. Margin percentage must be at least 140% after cash withdrawal.
| Q11: |
When is margin call made?
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A margin call is made when the margin percentage falls below 140%.
| Q12: |
When do I need to top-up my Share Margin Financing account?
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You need to top-up your margin within two market days from the date of notice e.g. if the margin call is made on a Monday, you will need to top-up by Wednesday.
| Q13: |
How do I top-up my Share Margin Financing account?
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You will need to provide additional margin of cash and/or marginable securities to bring the margin percentage to not less than 140%
| Q14: |
What happens if I am unable to top-up?
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L&T shall have absolute discretion and without further notice to you, liquidate the margin account including the shares deposited as collateral to bring the margin percentage to not less than 140% if the margin requirement is not met within two market days of margin call.
| Q15: |
When will force-selling take place? |
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Force-selling shall take place when the margin percentage falls below 130%. L&T has the right to liquidate the margin account to bring the margin percentage to not less than 140%. In a volatile market, you are required to monitor your position closely and if you do not wish to be sold-out, you are required to top-up with cash by 12 pm on the force-selling day.
| Q16: |
Are there any administrative charges?
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There is no processing fee to open a Margin account. Charges by CDP are maintenance fees for your Depository Agent (DA) Sub-Account on a quarterly basis and fees for share transfer between your Global Securities Account (GSA) and DA Sub-Account. The maintenance fees may be waived depending on the amount traded for that quarter. Charges by L&T include handling fees for dividend distribution.
| Q17: |
Am I still entitled to dividends, rights and bonus on my shareholding?
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Yes, these will be credited to your margin account. For rights issue, you will be informed of the details by mail.
| Q18: |
How will I be notified of my trades?
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Contract notes will be sent to you by CDP. L&T will send you a monthly statement, reflecting all share transactions and movements in your account, shareholdings at the close of that month and debit/credit entries for interest/fees charged and dividends received respectively.
| Q19: |
Do I earn interest if the net balance in my Share Margin Financing Account is in credit?
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Yes, the interest rate will be based on an overnight deposit rate given by the bank and will be subject to change daily. There will however, be a monthly administrative charge, subject to the lower of the interest earned or $1/- for the month.
| Q20: |
What is Margin Refinancing?
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Margin Refinancing is the facility that allows you to pay off your existing margin account balance with another financial institution and transfer the balance and marginable securities to L&T. (Standard Share Margin Financing Account Terms & Conditions apply.)
| Q21: |
How do I apply for Margin Refinancing?
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All you have to do is to open a Margin Financing Account with L&T and instruct us on the refinancing. The whole process will take no longer than 3 working days. At the time of Margin Refinancing, the margin percentage must be at least 140%. (The above Q4 to Q18 are also applicable for Margin Refinancing.)
| Q22: |
Who can I contact for assistance? |
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You can contact your Trading Representative, our Helpdesk on 6799 8188/180 or Margin Department on 64370139/120/147/165.
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