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The EB5 Roadshows in India

Regulations on Securities Lending & Borrowing (SLB)

SEBI has allowed all categories of investors including retail and institutional to borrow as well as lend securities. Since some entities are regulated jointly with other regulators their specific regulations are mentioned as under:

Foreign Portfolio Investor / Foreign Institutional Investor

Lending allowed subject to FDI policy

Lending not permitted for shares in ban list /caution list of RBI.

Borrowing allowed only for delivery into short sale

Margins to be paid only in the form of cash.

Custodian to report short selling, lending & borrowing on a daily basis.

Mutual Funds

Offer Document to disclose the intention to lend securities, exposure limit for the scheme as well as intermediary and market risk.
AMC’s to report to trustees on a quarterly basis about the level of lending in terms of value, volume and intermediaries; earnings/losses, and other details as may be required.

Insurance Companies:

Lending allowed to the extent of 10% of the quantity in the respective scripts in the respective fund. These limits must be adhered at all times.

Securities lent in SLB not to be treated as creating encumbrance, charge, hypothecation or lien on such securities.

Lending fees to be accounted on accrual basis.

Lending allowed only after approval from investment committee.

SEBI Registration No. INB/INF231397234(NSE) INB/INF011397230(BSE), IN-DP-CDSL 132-2015
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