Presently, securities on which derivatives are available in the F&O segment are available for transactions in SLB. In addition to that there are more Non-F&O securities

In case of SLB on behalf of clients Participant (Broker - Ventura) should enter an agreement with the client as prescribed. Participant is also required to obtain a UCI code for the client after which the client can lend and borrow in SLB

All categories of Investors viz. Retail, HNI and Institutional clients can participate in SLB.

NSCCL acts as a central counterparty providing financial settlement guarantee for SLB transactions. NSCCL has a robust risk management system and collects adequate margins from participants to cover counterparty risks.

As per the clarification from Income Tax vide their circular no. 2/2008, dated 22-2-2008 transactions done in the SLB shall not be regarded as transfer. For further details, please refer circular no. 2/2008, dated 22-2-2008 of the income tax department.

The tenure for SLB transactions is up to 12 months. 12 fixed monthly tenures with fixed reverse leg settlement dates are available for transactions in SLB. The fixed settlement dates is the first Thursday of the respective month. Each month is assigned a series to it with January having series as 01 up to December having series as 12.

Lending fee is quoted on per share basis. If the lender is lending shares for a period of 90 days he can quote lending fee per share which is based on the rate of return expected by the lender.

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 payout 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: First Thursday of the series month. 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.

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

A) No margins are levied on the lender.
B)100% of lending price (Market Value of the security), Value at Risk margins, Extreme Loss Margins (same as applicable in Cash market for buying or selling a security) and End of day (EOD) MTM are levied on the borrower.

A lender having an existing lend position can recall a position by entering a recall order on the trading terminal. The lender shall quote the lending fee it wishes to forego for the balance period. In case the order is matched successfully then the settlement of the early recall transaction happens on a T+1 basis. After successful completion of pay‐in, the position of the lender would cease to exist. Recall orders can be entered upto 3 days prior to the respective reverse leg settlement day.

A Client having an existing borrow position can repay the securities to NSCCL. On receipt of securities the margins levied on borrower are immediately released. The borrower can further lend the securities for the balance period of the tenure. For this the borrower needs to enter a repay order on the trading terminal by selecting order type as “Repay”. The borrower shall quote the fee he expects to receive back for the balance period. In case the order is matched successfully then the settlement of the early repay transaction shall happen on a T+1 basis. After successful completion of pay-in the position of the borrower shall cease to exist. Repay orders can be entered up to 3 days prior to the respective reverse leg settlement day. The orders can also be entered for full or partial quantity.

The transaction shall be financially closed out at the higher of below
A) 25% of closing price of the security on T+1 day (closing price for the security in the capital market segment of NSE),
OR
B)(Maximum trade price of the security in the capital market segment of NSE from T to T+1 day) - (T+1 day closing price of the security in capital market segment of NSE)

The transaction shall be cancelled, however, the lending fee shall be collected and passed on to the lender.

If the borrower fails to deliver the securities, NSCCL conducts a buy‐in auction to acquire the securities on the reverse leg settlement date. If securities are not available in auction then the transaction is financially closed out at the higher of below mentioned close out rate
A)Maximum trade price in the capital market segment of NSEIL from (reverse leg settlement day - 1 day) to reverse leg settlement day,
OR
B)25% above the closing price of the security in the capital market segment on the reverse leg settlement day.

Yes, position limits are applicable in case of SLB. Following are the current limits applicable Market Wide Position Limits :- 10% of the free-float capital of the company in terms of number of shares i.e. 10% of the number of shares held by non-promoters in the relevant security. Participant/FII/MF Position limits :- Lower of 10% of the market-wide position limits (No. of shares) or Rs. 50 crs. Client Level Position Limits :- should not be more than 1% of the market‐wide position limits.

Dividend – Collected from borrower on record date by NSCCL & passed to lender. Stock Split & Bonus – Position of borrower adjusted and the lender receives the revised quantity on return. Other Corporate Actions such as rights, Merges, AGM, Open Offer – Foreclosure 2 days prior to ex-date. In case of Foreclosure, lender has to pay back proportionate lending charges received and borrower has to receive back the same.