NSE Clearing as an Approved Intermediary launched the Securities Lending & Borrowing Scheme on April 21, 2008. Lending & Borrowing is facilitated on an automated screen based platform where the order matching is on price time priority. The participant needs to quote the lending fee per share on the order matching platform.

Features of Securities lending and borrowing scheme

• Automated screen based trading platform with online matching of trades based on price- time priority
• Tenure of lending and borrowing available upto a period of 12 months
• A facility for placing early recall request for the securities lent is provided to the lender
• A facility for the borrower to make an early repayment of securities and further relend them
• The transactions are based on fixed monthly tenures with specified reverse leg settlement dates and the tenure ranges from 1 month up to 12 months.
• The specified reverse leg settlement date is the first Thursday of the corresponding month. Each reverse leg settlement date is assigned a specific series number. Majorly securities traded in F&O segment are eligible for lending & borrowing under the scheme.

Two separate series of contracts are made available as given below:-
      A.Contracts which shall continue to be mandatorily foreclosed in the event of AGM/EGM
      B. Contracts which shall not be foreclosed in the event of AGM/EGM.