Comment on Basics on SLB (Stock Lending & Borrowing)

Nithin Kamath commented on 18 Aug 2014, 06:13 PM

To participate in SLB, you need to first open an SLB account, unless you intend to borrow/lend atleast 25lks worth of stocks it is not really worthwhile to participate.

1. Actual matching happens as explained in the post above. As long as there are limits which don’t match, there is no transaction that takes place.
2. You are lending/borrowing the actual stock and not their derivatives.
3. Borrowers is either looking at shorting or to get into any of the arbitrage opportunity that exists between stock and its F&O contracts.
4. No it cannot really be considered as short selling. Borrower as I explained might be using this for arbitrage.
5. SLB is still not very active, not many transactions that take place. What you see on NSE is the only data available.

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