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products & services

SLB – Securities Lending and Borrowing

Stock Lending and Borrowing (SLB) Mechanism is a platform wherein a person can lend theor idle shares in their portfolio to a borrower to fulfill his settlement 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 lending and borrowing orders are executed on price time priority, similar to the equity trading system. There is no counter party 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 cost 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 SLB transaction.

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