Share Financing FAQ
Share Financing General FAQ
DBS Share Financing is a revolving loan facility secured by marginable shares and ETF (Exchange Traded Fund). It allows you to utilise the loan to increase your investment purchasing power and manage your cash-flows for your investment.
Marginable shares and ETF meant shares and ETF acceptable by DBS Bank with some form of value. Please refer to the Marginable Securities List on our website here.
This product is eligible for Singapore Citizen (SC), Singapore Permanent Resident (SPR) and Foreigners (including non-residents in Singapore) age 21-75 years old. It is not available for US Tax person and residents in the European Economic Area (EEA).
If you have a DBS Vickers Online Trading account, you will be able to use DBS Share Financing as a settlement option for SG, HK and US markets.
If you do not have a DBS Vickers Online Trading account, then financing is only available for SG market.
If your application has all the necessary documents provided, it will take 3 working days for the Share Financing account to be opened. After the account is opened, you will need to arrange for collateral to be deposited into this account before you can start using this share financing facility.
If your application is unsuccessful or additional supporting document is required, you will also receive a notification from us.
If you are using a Trading Representative, you can approach him/her to assist you. If you do not have a Trading Representative, then our Relationship Managers will be able to assist you with the pledge. Please leave your contact information through our website here.
Relationship Managers contact:
1) +65 6878 1716 (9am – 5pm Monday – Friday except Public Holidays); or
2) +65 6878 4969 (9am – 5pm, Monday – Friday except Public Holidays)
You can do a Cash collateral (via online cash transfer) and/or Share collateral pledge. To pledge SG shares, you are required to complete the CDP Securities Transfer Form duly signed with your authorised signature maintained with CDP (Central Depository Pte Ltd). Kindly note that CDP charges $10 + GST per counter per transfer. You can submit the completed form to us through the following channels:
- Your Trading Representative (if you have one)
- DBS Vickers Client Services Unit located at MBFC Branch at Level 3 MBFC Tower 3
- Share Financing Relationship Managers
For Hong Kong / US shares pledge, you will need to provide your authorised instruction to your other Financial Institution to initiate the transfer. A copy of the same instruction must be provided to us. We can provide you with our template to assist with your pledge. If you have Hong Kong / US shares with DBS Vickers, we can facilitate with DBS Vickers to arrange your pledge to the DBS Share Financing Account.
Yes, our Relationship Manager will be able to assist you, please leave your contact information through our website here. To kickstart the redemption, we will need you to provide an authorised instruction to both parties (DBS Bank and the counter-party). Please provide us your name, contact number and best time to call, and we will arrange for a Relationship Manager to assist you.
Relationship Managers contact:
3) +65 6878 1716 (9am – 5pm Monday – Friday except Public Holidays); or
4) +65 6878 4969 (9am – 5pm, Monday – Friday except Public Holidays)
You can transfer cash into your Share Financing account via Internet Banking or deposit via cheque. Please take note of payee details as following:
Payee account name: CBG Share Financing
Payee account number: 003-957484-3
Do provide your name and Share Financing Account Number on cheque’s reverse or as recipient reference in Internet Banking.
How to add Share Financing account as payee for recurring cash transfer:
How to do one-time cash transfer to your Share Financing account via Internet Banking:
Account Opening Related FAQ
You can apply for DBS Share Financing online through our website here.
However, if you are not an existing DBS Bank customer, or applying as “Joint Account” holders, please contact our Relationship Managers for assistance to open Share Financing account.
We are required by tax regulations under the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) to identify the tax residence of our customers. Thus, we will need you to provide us with your latest tax status before you can proceed with the Share Financing application.
Central Depository Pte Limited (CDP) is a wholly owned subsidiary of the Singapore Exchange Ltd (SGX), providing integrated clearing, settlement and depository facilities for customers in the Singapore securities market, including both equities and fixed income instruments.
A CDP account is a custody account for keeping your shares. Once your opened Share Financing account, we will establish an addition custody account (known as sub-account) for your shares pledged to your Share Financing Account. There are quarterly fees imposed by CDP on the custody account, please refer to the Schedule of Charges on our website here.
Broker nomination is to link your share trading account to Share Financing account. By completing the “Broker Nomination” form, you allow the Bank to accept trades done by you with a broking firm for settlement and financing with DBS. It is also to protect your interest from unauthorised trades which attempt to use your share financing account for settlement.
TR code (also known as Trading Representative code) is a unique code provided by the stockbroking company to identify the Trading Representative. You can obtain this code on the contract note next to your trading account number, or you can ask your Trading Representative for it.
I have completed the all the forms, but I am unable to click "Next" in the Terms & Conditions page. What should I do?
To complete your submission, you will need to read and understand the Terms, the Memorandum of Deposit/Charge, etc by clicking the links before proceeding with the application.
Margin Call Related FAQ
A Margin Call occurs when your collateral value is unable to support the amount of loan you used. This is derived by taking your securities margin value divided by your loan usage (also known as “Margin Maintenance”). It is usually measured in percentage term and cannot fall below 140%.
You are required to meet your margin top up obligation within the stipulated timeframe if your account hits a Margin Call.
You will have to deposit additional cash or sell your shares in your existing portfolio to restore margin maintenance level above 140%.
Note that in a falling market, your shares portfolio value is likely to continue to lose value, resulting in “back-to-back” margin call. This may happen If your top-up is only to meet the first margin call.
Given the short time frame to regularize your account, share pledge from CDP to your share financing account will not be able to meet the timeline; thus, this option is not advisable.
If you failed to meet the timeline, then a "Force Selling" status is triggered where selling of shares will be done to your account to bring the LTV to the approved margin level.
“Force Selling” happens when your account's margin position deteriorates to more than 10% of the approved margin. As an illustration, if your account is approved at 140%, then Force Sell will be triggered at 130%.
You will be notified, and if your loan exceeded the remaining share collateral value, the account will be on margin call. You are required to regularise/ top up your account in accordance with the Margin Call process.
Online and Foreign Markets FAQ
To settle share trades on US & HK markets using Share Financing as settlement mode, the trades must be settled via DBS Vickers online trading platform. Therefore, you must have a DBS Vickers Online Trading Account as the nominated broker account for Share Financing.
We have revised our “Notice of Assignment” and “Memorandum of Deposit/Charge” in May 2018, which allows us to offer you financing for Exchange Traded Funds (“ETFs”) and shares listed in overseas stock markets. You are required to consent on the said terms before enabling Share Financing for US & HK Markets.
You must have a DBS Vickers Online Trading Account as the nominated broker account for Share Financing. The Share Financing online settlement can only be done via DBS Vickers Online Trading Account.
You are also required to consent on our latest “Notice of Assignment” and “Memorandum of Deposit/Charge” (revised in May 2018).
What should I do if I wish to have my trades to be settled under Share Financing via DBS Vickers Online Trading Account?
After logging into your DBSV Online Trading account, under the "Place Order" menu, select "DBS Share Financing" as Settlement Mode. This will enable your trade to be settled via the DBS Share Financing Account.
You can go to "My Account" page, scroll down to "Holdings" section, and select "DBS Share Financing".
Trading limit for Share Financing is dependent on the pledged collaterals in your Share Financing account and subject to Bank’s internal review.
Note this Trading Limit differs from your Trading Limit under “cash settlement”.
The Share Financing Trading Limit is displayed in the DBS Vickers Online Trading account when you select "Share Financing" as a settlement mode.
If you are using Share Financing to settle your trades via DBSV Online Trading Account, then only marginable shares and ETF can be purchased. Please refer to the DBS Share Financing Marginable list on our website here.
Alternatively, you will be able to see if the purchase is allowed when selecting “Share Financing” as settlement mode on DBSV Online Trading Account.
(Note: Due to regulation, you cannot use DBS Share Financing account to buy DBS Bank shares, even if it is without financing).
No, once your order is filled, we will not be able to amend your contract to Share Financing settlement. You will need to settle your trade per what you have selected i.e. cash settlement, CPF, SRS etc.
Given that I have a loan in SGD and a cash balance in USD, and I want to clear the SGD loan using my USD, what should I do?
You can give an instruction to our Relationship Managers to convert your USD to SGD using the prevailing FX rate. When we receive your instruction, we will process currency conversion and the converted amount will be credited to the SGD wallet of your Share Financing account. Note that for same day conversion, please submit your instruction before 12pm, Monday – Fridays except Public Holidays.
Relationship Managers contact:
5) +65 6878 1716 (9am – 5pm Monday – Friday except Public Holidays); or
6) +65 6878 4969 (9am – 5pm, Monday – Friday except Public Holidays)
At this moment, the trading settlement currency is SGD.
I have traded a Singapore stock denominated in USD and have it settled as SGD (i.e. SGD loan). Am I able to sell this share and select USD as settlement currency?
At this moment, the settlement currency depends on where the market is. Thus, for Singapore market, it will be SGD.
If we haven't answered your question, click here to connect with our dedicated relationship managers for all your share financing needs.