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2 clusters · 6 sources · 3 days · First seen 30 days ago · Last updated 27 days ago

Indian securities lending and borrowing market reforms

Overview

Major Indian clearing corporations, including BSE Clearing Limited (BSECL) and NSE Clearing, have introduced shorter-tenure contracts within their Securities Lending and Borrowing (SLB) segments. Effective August 17, 2026, these contracts aim to provide market participants with increased flexibility for short-term securities borrowing and delivery requirements, potentially facilitating inter-exchange arbitrage and better price alignment.

In response to these market shifts, the Securities and Exchange Board of India (SEBI) is planning to overhaul the national SLB market. Proposed reforms under discussion include net settlement, interoperability within the SLB framework, and expanding the range of eligible stocks. These regulatory changes are intended to improve price discovery and strengthen the connection between cash and derivatives markets, particularly following the introduction of a Closing Auction Session for eligible shares.

Entities

Securities and Exchange Board of India · BSE Clearing Limited · NSE Clearing · National Stock Exchange of India

Timeline

27 days ago

[BUSINESS] 3 sources
India's SEBI plans securities lending reforms as BSE introduces shorter contracts
SEBI is planning reforms to India’s securities lending and borrowing market to improve liquidity, while BSE Clearing has introduced shorter-tenor contracts to support short-term market needs.
30 days ago

[BUSINESS] 3 sources
BSE and NSE Clearing introduce shorter-tenure SLB contracts
BSE Clearing and NSE Clearing have launched shorter-tenure Securities Lending and Borrowing (SLB) contracts to increase market flexibility and support short-term liquidity needs.

Sources

businessnewsthisweek.com · News18.com · policycircle.org · smestreet.in · sundayguardianlive.com · yespunjab.com