"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)*

*WHAT?*

📌SLB is a legally approved medium for lending & borrowing of Securities

📌Regulations were  originally formed by SEBI in May 1997 & last modified in Jan 2018.

📌All  market  participants in Indian  securities market have  been  permitted  to  lend/borrow subject  respective  regulatory  guidelines

*WHY?*

📌Provides an incremental return to the Lender on a long hold strategy portfolio.

📌Settlement is guaranteed by the NSE Clearing Ltd.

*WHO?*

📌 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* :

🖋️Additional Income.

🖋️Protection of all rights as owner.

🖋️Settlement Guaranteed by NSCCL.

🖋️Low costs.

🖋️Potential to improve the portfolio performance.

For any query, please feel free to let me know.

Thanks & Regards

Jigar Shah

📱:8976422920

📧:jThis email address is being protected from spambots. You need JavaScript enabled to view it.