Securities lending and borrowing
Also called: SLB, stock lending
A system for borrowing shares from their owners for a period, for a fee, often used to sell short.
The borrower sells the shares and must return the same number later, compensating the lender for dividends and corporate actions. Rules, eligible shares and terms are set by SEBI and the exchanges and change over time.
Learn more in these lessons
- Short sellingHow does short selling work, and why can its losses be unlimited?
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