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Understanding the Interrelation Between Securities Borrowing and Lending (SBL) and Transfer Pricing Risk Implications in Indonesia

17 November 2025 by Pro Visioner Konsultindo - Indonesia

Securities Borrowing and Lending (SBL) constitutes a pivotal mechanism within the capital market infrastructure, facilitating the temporary transfer of securities ownership rights - such as stocks or bonds - from a lender to a borrower for a predetermined duration. The purposes underlying such transactions are multifaceted, encompassing the fulfillment of settlement obligations, the implementation of investment or hedging strategies, and the enhancement of overall market liquidity. While the possession of securities is temporarily transferred, the ultimate ownership remains vested in the lender, thereby maintaining the integrity of long-term ownership structures.