"SECURITIES LENDING & BORROWING" (SLBS)
While building long term equity portfolio and getting only dividend income and remain a mere spectator of volatility in current information age is painful. SLBS or Securities Lending & Borrowing provides a window of opportunity to such investors .
*Overview of the Securities Lending & Borrowing(SLB)*
📌SLB is a legally approved medium for lending & borrowing of Securities
📌All market participants in Indian securities market have been permitted to lend/borrow subject respective regulatory guidelines
📌Provides an incremental return to the Lender on a long hold strategy portfolio.
📌Settlement is guaranteed by the NSE Clearing Ltd.
📌 Scenarios in our experience where opportunities arise for Borrowers.
✒️Financing the Trading book at a lower rate of interest
✒️Reverse abritage when futures are at a discount to stock
✒️To cover short position or to avoid settlement failure
✒️Borrow demand due to Physical Settlements in Equity Derivatives
*Benefits to Lenders* :
🖋️Protection of all rights as owner.
🖋️Settlement Guaranteed by NSCCL.
🖋️Potential to improve the portfolio performance.
For any query, please feel free to let me know.
Thanks & Regards