NSCCL on WebNotes

How to borrow shares via SLB on Zerodha

Tue, 12 May 2026 00:00:00 +0000

Borrowing shares through the NSCCL Securities Lending and Borrowing (SLB) platform on Zerodha allows investors and traders to obtain shares for delivery-based short selling or hedging strategies. Unlike intraday short selling (MIS), which must be squared off by day end, SLB borrowing enables multi-day or multi-month short positions in eligible equity shares. The borrowed shares arrive in your demat account via NSCCL settlement and can be sold on the exchange like regular delivery shares.

How to handle an early SLB recall on Zerodha

Tue, 12 May 2026 00:00:00 +0000

An early recall in the Securities Lending and Borrowing (SLB) framework refers to the lender’s right to demand the return of lent shares before the agreed series expiry date. Under SEBI’s SLB framework, lenders have an unconditional right to recall shares at any time; the borrower must return the equivalent shares within the recall settlement period or face a close-out by NSCCL. Early recalls are most common when lenders need to sell the shares (for example, in response to a price target being reached), when corporate action entitlements require the lender to hold the shares directly, or during high-volatility periods.

How to lend shares via SLB on Zerodha

Tue, 12 May 2026 00:00:00 +0000

Securities Lending and Borrowing (SLB) allows long-term equity investors to earn a fee by temporarily transferring shares to borrowers (usually traders who wish to short-sell) while retaining the economic benefit of the position for the lending period. On Zerodha, SLB is accessed through Console and operates on the NSCCL (NSE Clearing Limited) SLB platform. The clearing corporation guarantees both sides of the transaction, so lenders face clearing-corporation counterparty risk rather than individual borrower default risk.

SLB on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Securities Lending and Borrowing (SLB) is a mechanism whereby the holder of securities (lender) temporarily transfers them to a borrower for a fee, with the borrower obligated to return equivalent securities by a stipulated date. In India, the SLB platform is operated by NSE Clearing Limited (NSCCL) and BSE’s clearing corporation under SEBI’s framework. Zerodha offers SLB to eligible clients, allowing long-term equity investors to earn lending income by putting their idle demat account holdings to work.

Zerodha clearing arrangement

Mon, 11 May 2026 00:00:00 +0000

Clearing and settlement is the post-trade process by which the obligations arising from securities and derivatives transactions are determined, confirmed, and discharged. Zerodha Broking Limited, as a trading member of NSE, BSE, MCX, and MSEI, participates in the clearing infrastructure of each exchange through designated clearing corporations. The clearing arrangement defines how Zerodha’s client trades are matched, netted, and settled, and determines which entity bears the counterparty risk and settlement obligation on behalf of Zerodha’s clients.

Zerodha clearing corporation flows

Mon, 11 May 2026 00:00:00 +0000

Overview

Every securities transaction executed through Zerodha’s Kite platform passes through a clearing corporation before settlement is completed. The clearing corporation sits between the buyer and seller in every trade, guaranteeing completion of the transaction irrespective of whether either counterparty defaults. For NSE trades, the clearing corporation is NSE Clearing Limited (NSCCL, formerly the National Securities Clearing Corporation Limited). For BSE trades, it is the Indian Clearing Corporation Limited (ICCL). Zerodha, as a broker, holds clearing membership (or uses a clearing member) to participate in these clearing and settlement flows.