Hong Kong Regulations

SECURITIES AND FUTURES (DISCLOSURE OF INTERESTS-SECURITIES BORROWING AND LENDING) RULES - SECT 9

Records to be kept by an approved lending agent

(1) Where-

   (a)  qualified shares are transferred or delivered by a person to an
        approved lending agent, as referred to in section 5(3)(a);

   (b)  shares become qualified shares, as referred to in section  5 (3)(b);

   (c)  an approved lending agent lends qualified shares, as referred to in
        section 5(3)(c);

   (d)  qualified shares are returned to the approved lending agent, as
        referred to in section 5(3)(d);

   (e)  qualified shares held by, or on behalf of, an approved lending  agent
        cease to be qualified shares, as referred to in section 5(3)(e);

   (f)  qualified shares are returned to a person, as referred to in
        section 5(3)(f); or

   (g)  an approved lending agent ceases to have a subsisting right to require
        the return of qualified shares, as referred to in section 5(4)(b), the
        approved lending agent shall, within 3 business days after the
        occurrence of the event, make a record of the event.

(2) A record made under subsection (1) shall contain the following
particulars-

   (a)  the date of the occurrence of the event;

   (b)  the description and quantity of the shares or qualified shares which
        are the subject of the event; and

   (c)  (in the case of an event referred to in subsection (1)(c), (d), and
        (g)) the value of any collateral given, taken, returned or given up

(as the case may be) in the event.

(3) An approved lending agent shall-

   (a)  retain the record made under subsection (1) for not less than 3 years
        after the last day of the period within which the record is required
        to be made; and

   (b)  if requested by the Commission at any time within 3 years after the
        last day of the period within which the relevant record is required to
        be made, provide such record to the Commission within 5 business days
        after the date of the request.