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SLBM FAQs

Post Date : April 26, 2022

Q. Which stocks I can lend in SLB?

A. Presently the securities on which derivatives are available in the F&O segment are available for transactions in SLB.

Q. What is the settlement date for the SLB contract?

A. SLB contract settles on the first Thursday of every month.

Q. What are the various margins applicable to the borrower and lender on T-Day?

A. In the case of the borrower, only the lending fee is levied upfront as a margin. In the case of a lender, 25% of the lending price (T-1 cash market closing price) and Mark to Market (MTM) at end of the day are charged to the lender. These margins are not applicable in case if the lender does Early Pay-in of securities.

Q. What margins are applicable to the borrower and lender from T+1 to reverse leg settlement day (Reverse Leg)?

A. No margins are levied on the lender. 100% of the lending price, value at risk margins, extreme loss margins (same as applicable in the cash market for buying and selling security), and EOD MTM is levied on the borrower.

Q. What are the counter-party risks in SLB?

A. NSCCL (National Security Clearing Co-operation India) acts as a financial guarantor for the SLB, hence the risk is covered by them.

Q. What is Rollover, recall, and repay option?

A. Rollover is an option where the clients can rollover (shift) the current month’s position to next month

A recall is an option where clients recall the shares before the end of the contract

Repay is an option used by borrowers to repay the shares before the contract expiry

Q. What happens in case a dividend is announced between SLB Contracts?

All the benefits will be forwarded to the lenders.

Q. When will the shares leave lenders Demat?

A. Share lent will exit the lender’s Demat on T-day itself.

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

A. Minimum Contract is for one month and the maximum contract is for 12 months.

Q. Can NRI Client do both lending and borrowing?

A. No, NRI clients can only do lending.