Zerodha SLB Rollover

SLB rollover process

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SLB (Securities Lending and Borrowing) contracts have monthly tenors typically. To extend an SLB position past the original tenor, the rollover process:

Mechanics

  1. Pre-expiry, identify the SLB position to roll over.
  2. Reverse the existing position at the contract’s settlement.
  3. Initiate a new SLB for the next cycle at current market rate.
  4. Confirm both legs via the SLB interface.

When to roll

  • Borrower wants to continue short position: Roll the borrow contract.
  • Lender wants to continue earning fee: Roll the lend contract.
  • Both parties must agree to roll.

Considerations

  • Lending rate changes each cycle based on demand / supply.
  • Margin requirements may shift.
  • Tax implications for each cycle.

For tax: each SLB transaction (lend / borrow / roll) creates an accounting event. Consult a CA for complex tax situations.

See also

External references

References

  1. NSE Clearing, SLB rollover, nseclearing.com.
  2. SEBI, SLB framework, sebi.gov.in.

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