BSE Ltd.Terminologies in SLB
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Terminologies in SLB

  • "Lender"means a person who deposits the securities registered in his name or in the name of any other person duly authorised on his behalf with an approved intermediary for the purpose of lending under the scheme.

  • "Borrower" means a person who borrows the securities under the SLB Platform through an approved intermediary.

  • "Approved Intermediary"means a person duly registered by the Board under the guidelines/scheme through whom the lender will deposit the securities for lending and the borrower will borrow the securities.

  • "Securities" has the meaning assigned to it in Section 2 of the Securities Contracts (Regulation) Act, 1956.

  • "Lending price" refers to the total value calculated using closing price of the security in the cash market segment on Trade day-1 multiplied by quantity of shares lent. Lending price = Closing price of the stock on Trade day-1 * Quantity of shares lent

  • "Lending Fees" refers to the actual price at which the transaction is executed. Lending fee per share is at market determined rate. Lending fee = lending fee per share * quantity of shares borrowed/lent. For e.g. If a transaction is executed at Rs. 6 per share for 100 shares of Security "X" then the total lending fee obligation for the borrower for security "X" will be Rs. 600.

  • "First Trade Day" is the day when a listed contract is open for trade i.e. lenders and borrowers can enter into transactions.

  • "Stock Return Day" is the reverse leg settlement date, which means the day on which the Borrower will return the securities to the Lender and the contract will come to an end.

  • "Last Trade Day": For any given stock return day, the last day to borrow and lend will be the third business day prior to the stock return day. For a contract with Stock Return Day as July 8, 2010, the Last Trade Day would be July 5, 2010, assuming there are no trading holidays.

  • "Recall" means the lender is interested in recalling the security lent, prior to the stock return day of the contract.

  • "Early Return" means the Borrower is interested in returning the securities borrowed to the Approved Intermediary/Clearing House before the expiration date of the contract.