Securities Lending & Borrowing
Monetise Your Idle Holdings
Securities Lending and Borrowing (SLB) is a mechanism that allows investors to lend their idle shares to borrowers and earn additional lending fees. It is an efficient way to generate incremental returns from securities that are simply sitting in your Demat account.
The SLB platform offers automated execution with a central counterparty guarantee, ensuring safety and transparency for both lenders and borrowers. There is no capital gains tax on SLB transactions, making it a tax-efficient way to earn from your holdings.
Whether you are a long-term investor looking to earn extra income or a trader needing to borrow shares for short selling or arbitrage, our SLB platform has you covered.
Benefits for Share Lenders
Earn additional income from shares you already own.
Earn Lending Fees
Generate incremental income by lending your idle shares to borrowers at market-determined lending fees.
No Capital Gains Tax
SLB transactions are not treated as a transfer, so there is no capital gains tax liability on lending your shares.
Monetise Idle Shares
Turn your long-term holdings into an income-generating asset without selling them.
Counterparty Guarantee
The clearing corporation acts as a central counterparty, eliminating borrower default risk.
Retain Ownership Benefits
Continue to receive corporate action benefits like dividends and bonuses during the lending period.
Flexible Tenure
Choose lending periods from 1 month to 12 months based on your convenience and market conditions.
Why Borrow Securities?
Multiple use cases for borrowing shares through the SLB platform.
Short Selling
Borrow shares to sell in the market when you expect a price decline. Buy back at lower prices and return to earn the difference.
Arbitrage
Exploit price differences between cash and derivatives markets by borrowing shares for delivery obligations.
Settlement
Borrow shares to meet delivery obligations and avoid auction penalties for failed settlements.
SLB Platform Features
A robust and transparent platform for securities lending and borrowing.
Automated Execution
Orders are matched and executed automatically on the SLB platform with no manual intervention required.
Central Counterparty Guarantee
The clearing corporation guarantees all SLB transactions, eliminating counterparty risk for both lenders and borrowers.
Real-Time Monitoring
Track your lending and borrowing positions, fees earned and contract status in real time through our platform.
Transparent Pricing
Lending fees are determined by market forces of demand and supply, ensuring fair and transparent pricing.