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Securities Lending and Borrowing



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Some investors just keep accumulating company shares with an long term view. They do not sell and are not bothered with immediate stock price reactions.

If you are investing or holding a large quantity of shares of any of the F&O companies, you can consider them giving to othes who might temporarily need the share under SLBS

SLBS is Security Lending and Borrowing Scheme

Under this scheme, investors like us can give our shares to other prospective investors who need the shares for short durations like 15-days, a month or few months.

Most demat service providers such as IL&FS can do the arrangement and documentation (which is often online).

When you give shares under SLBS, the shares will remain in your demat but you will not be able to transact them.

You will continue to get dividends, bonus, stock splits and all other corporate activities that the company offers.

Because you are lending the shares for short duration, you will be paid some money for thee activity.

More details about SLBS is available at https://www.nseindia.com/products/content/equities/slbs/slbs.htm

Which shares can be offered / lent under SLBS? How much returns will I get if i offer my shares? These details will be available at https://www.nseindia.com/live_market/dynaContent/live_analysis/slbs_chain/chainDataBySeries.jsp

IL&FS Securities Lending & Borrowing Program details are at https://www.ilfsdp.com/SECURITIES_LENDING_BORROWING.aspx

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