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CIU-1.7.5

A Bahrain domiciled retail CIU may only enter into stock lending arrangements (including repurchase arrangements) in respect of any securities held by it, provided that:

(a) The counterparty is a licensed financial institution;
(b) The arrangement is consistent with good market practice;
(c) Acceptable collateral with a value equal to the securities lent is obtained to secure the obligation;
(d) The aggregate value of stocks lent does not at any time exceed 20% of the net asset value of the CIU's assets; and
(e) The circumstances and applicable conditions for such borrowings are disclosed in its prospectus.