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BSE launches roll-over facility in SLB scheme

Monday, September 7, 2015, 12:57
This news item was posted in Business category and has 0 Comments so far.

NEW DELHI: Leading stock exchange BSE today launched a roll-over facility in its securities lending and borrowing (SLB) scheme, a move that will increase participation in such market. SLB mechanism allows short sellers to borrow securities for making delivery. The roll-over facility in the SLB session will be available for a three-month period (original contract plus two roll-over contracts). Under this facility, lenders of securities would be allowed to extend an existing position. It means that lenders who are due to receive securities can now extend the period of lending. Similarly, a borrower who has to return borrowed securities can extend the period of borrowing. A mock trading session was conducted on Saturday to check the system performance. Earlier in May, National Stock Exchange (NSE) launched a roll-over facility in its SLB scheme. Currently, the country’s SLB market is very shallow. In November 2012, capital markets regulator Securities and Exchange Board of India (Sebi) had allowed roll-over facility in SLB scheme.      

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