SLB Risk Management

SLB ( Lend Your Shares )

Margins	T Day	T+1 Day	Reverse Leg
Lender	25% of Lending Price & MTM at EOD	Margins dropped on Settlement	No Margins
Borrower	100% of Lending Fees	100% of Lending Price, VaR, ELM &MTM at EOD	Margins dropped on Settlement
Margins are accepted in the form of Cash, Fixed Deposit, Bank Guarantee & Government Securities.

Position Limits	Security wise Applicable Limits
Market Wide (MWPL)	10% of the no. of shares held by non-promoters in the security
Participant Level	10% of MWPL or Rs. 500 mn whichever is lower
Institutional Investor (FII/ MF / Ins Cos. / PFI / Banks / PFs)	10% of MWPL or Rs. 500 mn whichever is lower
Client level (Excl. the ones mentioned above)	1% of MWPL
Position limit for SLB is considered for entire month.
The list is provided through circular “Applicable MWPL, Participant, Institutional Client & Non-Institutional Client Limits for Securities and ETFs – SLBS” issued on last working date of previous month.

Shortages	Type	Action taken
First leg	Security Shortage by Lender	No Funds payout to Lender. Financial close-out on T+1 @ min 25% of T+1 closing price of security
First leg	Fund Shortage by Borrower	No Securities payout to Borrower. Lending fee recovered from borrower & passed onto the Lender along with Securities
Reverse Leg (RL)	Security Shortage by Borrower	Valuation Debit to Borrower on RL day Followed by Auction on same day along with Cash Segment Auction settlement/ close-out on RL +1