InvestorQ : What are some of the salient features of the Securities Lending and borrowing mechanism on the NSE?
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What are some of the salient features of the Securities Lending and borrowing mechanism on the NSE?

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Nisha Chandani answered.
2 years ago
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Tenure of lending and borrowing available up to a period of 12 months

A facility for placing early recall request for the securities lent is provided to the lender

A facility for the borrower to make an early repayment of securities and further relend them

The transactions are based on fixed monthly tenures with specified reverse leg settlement dates and the tenure ranges from 1 month up to 12 months.

The specified reverse leg settlement date is the first Thursday of the corresponding month. Each reverse leg settlement date is assigned a specific series number. Majorly securities traded in F&O segment are eligible for lending & borrowing under the scheme.

Two separate series of contracts are made available as viz. Contracts which shall continue to be mandatorily foreclosed in the event of AGM/EGM and Contracts which shall not be foreclosed in the event of AGM/EGM. Given below are the key monthly Series pertaining to the SLBS system:

Sr No.

Series (A)

Series (B)

Month

1

01

X1

January

2

02

X2

February

03

03

X3

March

04

04

X4

April

05

05

X5

May

06

06

X6

June

07

07

X7

July

08

08

X8

August

09

09

X9

September

10

10

XO

October

11

11

N

November

12

12

D

December

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