SLBM FAQs

Q: What is SLBM in the stock market?

A: SLBM is a system that allows investors to lend or borrow securities for a specified duration and fee. Participants can place orders by specifying the lending fee and quantity, and the transaction is executed when matching quotes are found on the exchange.

Q: What is the full form of SLBM?

A: The full form of SLBM is Stock Lending and Borrowing Mechanism.

Q: What is the use of SLBM?

A: SLBM enables a trader to lend stocks and shares that are a part of their portfolio or to borrow shares that they do not currently possess.

Q: Which stocks can I lend in SLBM?

A: You can visit here https://www.nseindia.com/market-data/securities-lending-and-borrowing to check the list of eligible stocks.

Q: What is the settlement date for an SLB contract?

A: SLB contracts settles on the first Thursday of every month.

Q: What are the charges of an SLB transaction?

A: Brokerage of 10% + GST is levied on the lending fee.

Q: How to use the SLBM feature in RMoney?

A: If you wish to apply:

• If you wish to apply offline you can fill the offline form
• To apply online – click here

Q: What are the market timings for SLBM?

A: The market timings for SLBM are 9:15 AM to 5:00 PM on all trading days.
Feel free to call us at 0562-4266600 / 0562-7188900 to avail the benefits of SLBM. 

Q: What is the minimum and maximum contract duration for SLB?

A: The minimum contract duration is 1 month, and the maximum contract duration is 12 months.

Q: Where can SLB bids and offers be checked?

A: The SLB bids and offers can be checked by visiting https://www.nseindia.com/market-data/securities-lending-and-borrowing Use the drop-down menu to check the bids and offers for different months.

Q: Are SLB orders allowed on both NSE and BSE?

A: Currently, RMoney supports SLB orders only on NSE. SLB orders on BSE are not supported due to illiquidity.

Q: What is the income from SLBM for lenders?

A: As a lender, income varies from scrip to scrip. Lending rates are determined based on demand and supply.

For example:

• XYZ scrip has borrowers at ₹2 per scrip.
• If a lender lends 1,000 quantity, they will make ₹2 × 1,000 = ₹2,000 as gross lending income.
  

Q: What are the Rollover, Recall & Repay options in SLBM?

• A: Rollover: Clients can shift the current month position to the next month.
• Recall: Clients can recall shares before the end of the contract.
• Repay: Borrowers can repay shares before the contract expiry.

Q: What are the various margins applicable to the borrower and lender?

• A: For borrowers: Borrowers must provide 125% margin of the stock value and pay the lending fee.
• For lenders: 25% of the lending price (T+1 cash market closing price) and Mark to Market (MTM) at the end of the day are charged (These margins are not applicable if the lender does an Early Pay-in of securities).

For more details, click here: https://www.nscclindia.com/sites/default/files/2024-09/FAQ%20for%20SLB%20Scheme.pdf

Need Help?

Contact RMoney at 0562-4266600 / 0562-7188900 or email askus@rmoneyindia.com