Singapore Stock Loan FAQs
The questions substantial shareholders, founders, and family offices ask most — about borrowing against SGX-listed shares, the terms and mechanics, CDP custody, dividends and voting, disclosure under Singapore law, and the Take-over Code. Answered plainly, answer first.
01 · The basics
Pledge, not sale
What a Singapore stock loan is — and who it is for.
Can't find your question?
If your situation is not covered below, a senior principal is glad to discuss it directly and in confidence. Send a confidential enquiry and we will respond — usually within one business day. For definitions, see the glossary; for a full explainer, read what is a Singapore stock loan?
01What is a Singapore stock loan?
A Singapore stock loan is financing secured against shares listed on the Singapore Exchange (the SGX Mainboard or Catalist). You pledge listed shares as collateral to draw cash, while keeping beneficial ownership, the full economic upside, and — subject to structuring — your dividends and your vote. On repayment, the security is released and the shares return to you in full. Unlike an outright sale, the position is never given up.
02How is a stock loan different from selling the shares?
A sale removes both the capital and the holder from the position permanently and may trigger disclosure and control consequences, while signalling intent to the market. A stock loan extracts only the capital you need. The shares remain yours, you retain the upside, and you recover the full position on repayment of the loan.
03Who uses a stock loan against SGX-listed shares?
Typical borrowers are founders and controlling shareholders of SGX-listed companies, substantial individual shareholders, family holding companies and family offices, and listed corporates with treasury or strategic equity. The common thread is a meaningful, long-term Singapore-listed position the holder would rather keep than unwind.
02 · Eligibility & collateral
Mainboard · Catalist · S-REITs
Which SGX shares qualify as collateral.
04Which Singapore-listed shares are eligible as collateral?
Eligibility is assessed case by case across the Mainboard and selected Catalist equities, including Straits Times Index constituents and selected S-REITs and business trusts. Relevant factors include free float, average daily traded value, market capitalisation, sector, and shareholder concentration. Transactions are typically structured from SGD 5 million upward.
05Can S-REITs and business trusts be used as collateral?
Often, yes. Units in S-REITs and business trusts are assessed like other SGX-listed counters — on liquidity, free float, market capitalisation, and concentration — with their distribution mechanics and unit-holder structures factored into the structure. As with any counter, an indicative view follows a review of the specific name and holding.
06What transaction sizes do you arrange?
Transactions are typically structured for positions valued from SGD 5 million upward, with no defined upper bound. Larger positions can be accommodated through staged structuring.
07Does it matter whether the counter is on the Mainboard or Catalist?
It informs the structure rather than excludes the counter. A liquid Mainboard name with deep daily turnover supports a different advance to a thinly traded Catalist growth company. Both are considered; the difference is reflected in the loan-to-value ratio and the margin mechanics, not in a blanket rule.
03 · Terms & LTV
LTV · tenor · recourse · dividends
The terms that shape a Singapore stock loan.
08What loan-to-value (LTV) can I expect?
There is no single headline LTV. The ratio is driven by the liquidity, volatility, free float, and shareholder concentration of the specific SGX-listed counter, together with position size and the chosen structure. An indicative LTV is issued only after review of the actual counter and holding.
09What tenor and pricing terms are available?
Tenors are typically a defined fixed term with renewal options. Pricing may be fixed or floating and can be serviced periodically or rolled into the structure. Renewal and early-repayment mechanics are agreed in the documentation, and terms are set per transaction against the collateral profile and the borrower's objectives.
10What recourse profiles do you offer?
A facility may be structured as non-recourse, limited-recourse, or full-recourse, depending on the structure and the collateral. The recourse profile governs how the facility behaves on default and the basis of recovery against the pledged shares. It is agreed up front as part of the indicative terms.
11Do I keep dividends and voting rights during the loan?
Subject to how the structure is built, you retain beneficial ownership of the shares, their full economic upside, and — depending on the arrangement — your dividend entitlement and your vote. The treatment of dividends, rights, and other corporate actions is set out in the documentation and aligned to how the position is structured, so it is clear before funding rather than discovered during the term.
04 · Disclosure & regulation
SFA 2001 · MAS · Take-over Code
What reporting a charge does and does not trigger.
12Does pledging my SGX shares trigger public disclosure?
It depends on your status and the size of the position. Under the Securities and Futures Act 2001, a person with an interest in 5% or more of a listed company's voting shares is a substantial shareholder and must notify the company and SGX within two business days, with changes in that interest also reportable. The reporting impact of a given security structure is assessed transaction by transaction, before any funding.
13What is the 5% substantial-shareholder rule under the SFA?
Under the Securities and Futures Act 2001 (SFA), a person who has an interest in 5% or more of the voting shares of a listed company is a substantial shareholder. They must notify the company and the Singapore Exchange within two business days of becoming a substantial shareholder, and subsequent changes in that interest — including ceasing to be one — are also reportable. Any disclosure or regulatory obligations are a matter for your own Singapore legal counsel, engaged in parallel; we act as arranger and introducer and do not provide legal or regulatory advice.
14How does the Singapore Take-over Code affect a share charge?
The Singapore Code on Take-overs and Mergers is administered by the Securities Industry Council (SIC) and can be engaged where a financing charge and any enforcement affect a holder's level of control. Whether, and at what point, the Code applies to your situation depends on the facts. Any disclosure or regulatory obligations are a matter for your own Singapore legal counsel, engaged in parallel; we act as arranger and introducer and do not provide legal or regulatory advice.
15Who regulates this, and where does MAS fit in?
The Monetary Authority of Singapore (MAS) is the integrated regulator of Singapore's financial sector and administers the Securities and Futures Act 2001, under which substantial-shareholder disclosure arises. The Singapore Exchange is the listing and trading venue and operates CDP. The Securities Industry Council administers the Take-over Code. We structure within this framework and confirm specifics with Singapore counsel on each transaction.
This is a general description of the reporting framework, not legal advice. Specific obligations are confirmed with Singapore counsel as part of each transaction.
05 · Process & confidentiality
CDP · custody · discretion
From enquiry to funding, and how the charge is held.
16How is the share charge held in Singapore?
The borrower opens an account with the designated custodian, and the lender takes security over that account; the collateral shares sit in that account and beneficial ownership is preserved. Custody is matched to the agreed structure and recourse profile. Margin and top-up mechanics, the treatment of corporate actions, and dividend handling are documented up front so there are no surprises during the term.
17How long does the whole process take?
Indicative terms are typically delivered within two to three business days of an initial submission. Full execution — documentation, KYC, and perfecting the lender's security over the custodian account — commonly completes within a few weeks thereafter, depending on the complexity of the position and any disclosure considerations.
18What do you need from me to get started?
To frame an initial view we ask for three things: the counter or company, the approximate size of the position you wish to borrow against, and your objective — the use of proceeds and the tenor. As the transaction advances, standard KYC and source-of-funds documentation is completed at the documentation stage, and Singapore counsel of your choosing reviews the facility, security, and custody agreements.
19Is my enquiry kept confidential, and can I use my own lawyer?
Yes on both counts. Enquiries are received through a secure channel and handled directly by a principal; we do not run a sales floor or a call centre, and your identity, counter, and position are not disclosed beyond the licensed counterparties and counsel required to execute the transaction. A non-disclosure agreement is available on request. Singapore counsel of your choosing is engaged in parallel during documentation to review the facility agreement, share charge, and custody arrangement.
06 · Repayment & risk
Return of shares · margin · default
How the loan ends, and the risks to weigh.
20What happens on repayment?
On repayment of the principal and accrued interest — at maturity, on renewal, or through early settlement on the agreed mechanics — the security is released and the shares return to you in full, free of the charge. Because the position was never sold, there is no need to repurchase it on the market and no execution risk in reassembling the holding.
21What are the main risks, and what is a margin call?
The principal risk is price-driven. If the pledged share falls materially, the loan-to-value ratio rises and the lender may issue a margin call requiring additional collateral or partial repayment; if unmet, the lender may exercise its remedy and sell pledged shares to restore cover — potentially at an unfavourable price and, for a concentrated line, with market impact. Interest accrues over the tenor. Conservative LTV, realistic price-scenario modelling, and clear margin and recourse mechanics, agreed up front, are what keep a facility sound.
Still have a question? Ask a principal.
Share the high-level details of your position and a senior principal will reply — confidentially, usually within one business day.