Securities Lending & Borrowing (SLB)
SLB is a legally approved medium for lending and borrowing of securities. It is done for a stipulated period of time at a certain lending or borrowing fee.
Provides an incremental return to the Lender on a long hold strategy portfolio. No risk as the settlement is guaranteed by the NSE Clearing Ltd. (NCL) thereby ensuring the return of stock.
Scenarios in our experience where opportunities arise for Borrowers.
- To cover short position or to avoid settlement failure.
- Reverse arbitrage when futures are at a discount to stock.
- Borrow demand due to Physical Settlements in Equity Derivatives.
- Financing the Trading Book at a lower book of interest.