Margin & Other, Lending fee, Documents required
Margin & Other
All transactions under SLBS are subject to margins. The following margins are applicable for transactions under SLBS.
25% of the lending price is levied as margin on lending transactions on T day. This is released on completion of pay-in of T+1 settlement.
100% of the Lending price is levied as margin on the Participants for borrow transactions starting from T+1 day till the shares are returned by the borrower.
This is collected on an upfront basis at the time of the transaction.
The margin so collected is released on completion of pay-in of the respective settlement.
The applicable limit to the client shall be set as per the clear margin available in the client account.
In case of Lender, the Early Pay-in of the Shares shall be done as a normal practice before the execution of a trade
Lending fee refers to the actual price of the transaction at which the transaction is executed. Lending fee per share is quoted by the participants while entering into SLB Transactions.
Lending fee obligation is the lending fee per share*quantity of shares borrowed/lent.
For e.g., If a transaction is executed at Rs 5 per share for 100 shares of Security "X" then the total lending fee obligation for the borrower for security "X" will be Rs. 500.
The lending fee is levied as margin on the Participants for borrow transactions on T day on an upfront basis.
GST & other statutory charges are applicable as per the norms on Lending fees & Charges.
SLBM Registration forms
Addendum to POA
SLB thus is a prudent way for investors to make an additional income by lending their idle stocks at a certain fee, for the stipulated duration. The client can also borrow the stocks and can then benefit from arbitrage opportunity or meet the exchange obligation of the pay-in of stocks.