Form SBUL26 Stock Borrowing and Lending Agreement Hong Kong
File Form SBUL26 to notify the SFC of a stock borrowing and lending agreement in Hong Kong.
SBUL26 at a glance
- Official title
- Notification of Execution of a Stock Borrowing and Lending Agreement
- Issued by
- Inland Revenue Department
We link the issuing authority's own index rather than hosting a copy, because the form is revised there and an out-of-date copy is worse than none.
Form SBUL26 Stock Borrowing and Lending Agreement Hong Kong
Participants in a Hong Kong securities lending programme must notify the Securities and Futures Commission (SFC) of any stock borrowing and lending agreement using Form SBUL26. This form is the SFC's primary tool for monitoring activity and ensuring compliance with the Securities and Futures Ordinance (Cap. 571). The notification serves a clear purpose, has strict filing requirements, and demands specific particulars.
When Must Form SBUL26 Be Filed?
File this form when you enter into a stock borrowing and lending agreement. A participant includes a licensed corporation, a registered institution, or any other person the SFC has authorised to join such programmes. The filing is required for both one-off transactions and standing arrangements.
Submit the notification within one business day of entering into the agreement. This deadline is strict. You need internal procedures to identify reportable agreements immediately and file the form through the SFC's electronic submission system.
Details Required on the SBUL26 Form
Form SBUL26 requires specific particulars about the agreement. These include the name and contact details of the participant making the notification, the date the agreement was entered into, and the names of the lender and borrower. You must also list the securities subject to the arrangement and state the terms, including duration and any collateral arrangements. Finally, the form requires a declaration that the agreement complies with the requirements of the Securities and Futures Ordinance.
The SFC uses this information to assess whether the activity meets the ordinance's exemption conditions. If the agreement does not meet those conditions, the borrowing transaction may be treated as a disposal and acquisition of securities, triggering stamp duty or other regulatory consequences.
SBUL26 Form Stock Lending Agreement Notification
The SBUL26 notification is part of a wider regulatory framework for securities lending in Hong Kong. The Securities and Futures Ordinance (Cap. 571) provides exemptions from the stamp duty that would otherwise apply to the transfer of securities under a stock borrowing and lending arrangement. To secure those exemptions, you must notify the agreement properly using Form SBUL26 and satisfy all exemption conditions.
Failure to file Form SBUL26 on time, or providing incomplete or inaccurate particulars, may result in the loss of the stamp duty exemption. In that event, the lender and borrower may become liable for stamp duty on the transfer of the securities. The SFC may also take enforcement action against the participant for non-compliance.
Hong Kong Securities Borrowing Lending Notification Procedure
The Hong Kong securities borrowing lending notification procedure is straightforward but demands accuracy. Complete Form SBUL26 in full, entering all required particulars about the agreement. Submit the form electronically through the SFC's e-submit portal. Then, retain a copy of the submitted form and any supporting documents for your records.
The SFC does not charge a filing fee for Form SBUL26. Be aware the form is a legal document. Any false or misleading information may constitute an offence under the Securities and Futures Ordinance.
SFC SBUL26 Form Submission Channels
The SFC accepts Form SBUL26 exclusively through its electronic submission platform. Paper copies are not accepted. You must have an active account on the e-submit system, which requires prior registration with the SFC. Licensed corporations and registered institutions typically hold such accounts. Other participants may need to apply for access before their first filing.
The e-submit system generates an acknowledgement upon successful submission. Save this acknowledgement as proof of timely filing.
Notify Stock Borrowing Lending Agreement Compliance Obligations
Notifying an agreement using Form SBUL26 does not end your compliance obligations. You must monitor the agreement throughout its term to ensure it continues to meet the exemption conditions. If the agreement is terminated or materially modified, you must notify the SFC, which may require a fresh filing. Keep records of the stock borrowing and lending activity for at least seven years after the agreement ends.
The SFC may conduct inspections or request additional information about any notified agreement. Maintain organised records to respond to such requests promptly.
Practical Tips for Filing Form SBUL26
File the form immediately after the agreement is signed. The one-business-day deadline is short, and any delay may cause the loss of the stamp duty exemption. Double-check the particulars of the lender, borrower, and securities before submission. Errors may require a corrective filing, adding administrative time. Use the e-submit system's validation features to catch missing fields before final submission. If you are not a licensed corporation or registered institution, confirm in advance that you are authorised by the SFC to participate in securities lending programmes. Only authorised participants may use Form SBUL26.
Related Forms and Further Information
The SFC publishes Form SBUL26 and its accompanying guidance notes on its official website. Always refer to the most current version of the form, as the SFC may revise it from time to time. The Securities and Futures Ordinance (Cap. 571) and the SFC's Code of Conduct provide the legal basis for the notification requirement.
For stamp duty matters connected to stock borrowing and lending, you may also need to refer to the Stamp Duty Ordinance (Cap. 117) and the Inland Revenue Department's guidance on securities lending transactions. The primary regulatory contact for Form SBUL26 remains the Securities and Futures Commission.
How to fill out Form SBUL26
Page one of the official form. Every field named below appears on it in the same order.
Notification of Execution of a Stock Borrowing and Lending Agreement by Lender (SBUL26)
This form is filed in duplicate. It notifies the Collector of Stamp Revenue that you, as the lender, have entered into a stock borrowing and lending agreement.
Lender’s Details
借出人名稱 Name of Lender: Enter the full legal name of the lending party.
香港身分證/ 護照/ 商業登記號碼（如有的話） HK Identity Card/Passport/Business Registration No.(if any): Provide the lender’s Hong Kong Identity Card number, passport number, or Business Registration number. If the lender is a corporation, use the Business Registration number (found on the BR certificate). If an individual, use the HKID or passport number. This field is optional (“if any”).
地址 Address: Enter the lender’s registered office address or principal place of business. For an individual, use the correspondence address.
成立地點 Place of incorporation: For a corporate lender, state the jurisdiction of incorporation (e.g., Hong Kong, Cayman Islands). If the lender is an individual, leave blank or write “N/A”.
成立日期 Date of incorporation: For a corporate lender, enter the date of incorporation as shown on the Certificate of Incorporation. Format as DD/MM/YYYY. Individuals leave blank.
Borrower’s Details
借用人名稱 Name of Borrower: Enter the full legal name of the borrowing party.
香港身分證/ 護照/ 商業登記號碼（如有的話） HK Identity Card/Passport/Business Registration No.(if any): Same rule as for the lender - provide the borrower’s HKID, passport, or Business Registration number. Optional.
地址 Address: Enter the borrower’s registered office or principal address.
成立地點 Place of incorporation: State the borrower’s jurisdiction of incorporation.
成立日期 Date of incorporation: Enter the borrower’s incorporation date.
Agreement Details
協議簽立日期 Date of execution of Agreement: Enter the date the stock borrowing and lending agreement was signed. This must match the actual execution date on the agreement document. Format as DD/MM/YYYY.
Declaration and Signature
借出人名稱 Lender’s Name: Print the lender’s name again.
簽署 Signature: The lender (or an authorised representative) must sign here. For a corporate lender, the signatory should have authority to bind the company.
電話號碼 Telephone No.: Provide a contact telephone number for the lender.
日期 Date: Enter the date of signing this notification. This is the date you submit the form, not necessarily the agreement execution date.
Common Mistakes
- Dates mismatch: The “Date of execution of Agreement” must exactly match the date on the signed stock borrowing and lending agreement. Do not use the date of this notification.
- Duplicate filing: The form states “In Duplicate” - you must submit two identical copies. Both copies must be signed.
- Incomplete borrower details: Even if the borrower is an overseas entity, you must still provide its place and date of incorporation.
- Signature by wrong party: Only the lender signs this form. The borrower does not sign here. If the lender is a corporation, the signatory must be a director or authorised officer; do not use a company chop alone unless the chop is accompanied by a signature.
Download the current form - always file the version on the issuing authority's site, not a copy.
Sources
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