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products & services

SLB – Securities Lending and Borrowing

Stock Lending and Borrowing (SLB) Mechanism is platform wherein a person can lend them idle shares in his portfolio to a borrower who does not have those shares in order to fulfill his obligation.

Stock Lending and Borrowing (SLB) transactions are executed through a fully automated screen based trading platforms of stock exchanges which adopt the principle of an order driven market and where the lending and borrowing orders are executed on price time priority, similar to the equity trading system. There is no counter part risk to either Lender or Borrower since the clearing corporations of the stock exchanges, as central counterparty, provide financial settlement guarantee for all SLB transactions.

As Lender, SLBM provides you an official Low costs platform to earn Risk-free Incremental Income (Lending Fees) from your idle portfolio, while fully protecting all your rights as owner, including all corporate benefits and actions on your holding, without any Capital Gain Tax implication on your holding.

As borrower, SLBM provides you a platform to cover your unintended short position created in the books and avoid of settlement failure and auction or to support a trading/hedging strategy.