Securities Lending And Borrowing - Features, Opportunities, Regulations: Motilal Oswal

Securities Lending And Borrowing - Features, Opportunities, Regulations: Motilal Oswal

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Securities Lending and Borrowing (SLB) is a mechanism through which investors can borrow or lend shares to other market participants for a stipulated duration, at a certain fee.

This mechanism provides liquidity to the equity market and thereby increases the market efficiency in India.

The platform provides a viable alternative to the derivatives market for purposes of hedging.

Borrowers in SLB are usually short-sellers i.e. traders who want to sell shares that they don't own.

Lenders on the other hand are those investors who have bought shares for long-term purposes and such shares are lying idle in their demat accounts.

Click on the attachment to read the full report:

Motilal Oswal Securities Lending and Borrowing.pdf
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