Earn additional returns on the
idle stocks in your Demat account
Are you an investor looking for higher potential returns on your long-term portfolio or a shortseller seeking to borrow shares for your trades? Look no further than SLBM (Stock Lending and Borrowing Mechanism).
What is SLBM?
SLBM is a process where you can lend your idle securities in your demat account to another investor
(borrower) who then uses the securities as collateral for their trade. By lending, you earn an additional
fee income of up to 20%. For example, if you lend stocks worth Rs. 1 Lakh, you may earn up to Rs.
20,000/- depending upon the quote by Borrower, where NSCCL* is the guarantor.
Why trade in SLBM?
650+ securities available for lending & borrowing
Flexible and customizable lending and borrowing arrangements
Comprehensive risk management framework to ensure securities safety
Protection of all rights as owner
All corporate action benefits will be given to lender
Risk-free Income without any Capital Gains Tax Implications
Lending fee earned from SLB transactions is considered as Business Income
Experienced team to support you through the entire process
Get started with a simple process
Our team will then register your code with the exchange
Once approved, you can connect with your dedicated RM for SLBM opportunities
Get started with Stock Lending and Borrowing Mechanism today and take your investments
to the next level. Contact us at 022-4050 8080 now to find out more!
(Processing Fees 10% of the lending income + 18% GST on processing Fees)
Standard DP charges are levied at 0.04%
Q1) Which securities are available for transactions in SLB?
Presently securities including F&O , eligible non F&O stocks and ETF are available for transactions in SLB.
Q2) Who all can participate in SLB?
SEBI authorizes participation by all categories of Retail and Institutional investors
Q3) What is the tenure for SLB transactions?
The tenure for SLB transactions is up to 12 months.
Q4) What is the settlement date of SLB contract expiry?
The fixed settlement dates are the first Thursday of the respective month.
Q5) How shall one quote the lending fee?
Lending fees is quoted on per share basis based on the annualized yield by the lender or the cost which the borrower expects to pay.
Q6) What will happen in case the dividend is announced between SLB contract?
All the benefits will be forwarded to the lenders
Q7) What is the settlement cycle for a SLB Transaction?
T Day: The Transaction is executed on T Day between the lender and borrower.
T+1 day: The Lenders are required to deliver the securities for pay‐in on T+1 day. Securities are thereafter transferred to the borrowing participants during pay‐out on T+1 day. The borrower shall bring the lending fee on T+1 which shall be passed on to the lender in the funds pay‐out.
Reverse leg settlement date: The borrower needs to deliver the securities at the time of pay‐in which shall be returned back to the lender during the pay‐out.
Q8) Is there any Counterparty risk involved in SLB transactions at NSCCL?
NSCCL is the central counterparty offering a financial settlement guarantee for SLB transactions and has a robust risk management system and collects adequate margins from participants to cover counterparty risks
Axis Direct is a brand under which Axis Securities Limited offers its retail broking and investment services. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This information is only for consumption by the client and such material should not be redistributed. Disclaimer & Statutory Information