BSE and NSE Clearing introduce shorter-tenure SLB contracts

Major Indian clearing corporations, BSE Clearing Limited (BSECL) and NSE Clearing, have introduced shorter-tenure contracts within their Securities Lending and Borrowing (SLB) segments. These new contracts, effective from August 17, 2026, are designed to provide market participants with greater flexibility for short-term securities borrowing and delivery requirements.

The new contracts feature a T+1 settlement for the first leg and a T+3 settlement for the reverse leg, excluding settlement holidays. BSECL's initiative utilizes the flexibility provided under the SEBI SLB framework to support a deeper and more efficient ecosystem, potentially facilitating inter-exchange arbitrage and better price alignment.

Specific operational rules apply to these shorter-tenure options: they will not be subject to foreclosure during Annual General Meetings (AGM) or Extraordinary General Meetings (EGM), and they will not include facilities for repay, recall, or rollover. The contracts are initially available for securities within the derivatives segments.