Saudi Arabia – Tad Amended Short Selling, SBL

Saudi Arabia – Tad Amended Short Selling, SBL

On 25 March 2021, SAU Tad amended short sale, securities borrowing rules.

Amendments Highlights

  • Allowed all types of investors to conduct short selling and securities borrowing and lending activities with specific conditions; amended criteria, requirements to activities.
  • Imposed new limits on eligible listed securities for short selling, including short ratio to average daily traded volume of the security (last 60 days), must not exceed 10 days.
  • Also amended SBL provisions relating to return of borrowed securities and collateral.
  • Where failed to return borrowed securities or collateral as per terms of SBL agreement, custody member to notify the Depository Centre, which will terminate SBL transaction.


  • The rules, procedures and the glossary became effective on 25 March 2021.