SLB rollover process

Wed, 20 May 2026 00:00:00 +0000

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

Mechanics

Pre-expiry, identify the SLB position to roll over.
Reverse the existing position at the contract’s settlement.
Initiate a new SLB for the next cycle at current market rate.
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.

How to roll over an F&O position on Zerodha

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

Rolling over an F&O position means closing the expiring near-month contract and simultaneously (or near-simultaneously) opening an equivalent position in the next-month contract, thereby maintaining continuous market exposure beyond the current contract’s expiry without triggering physical settlement or forced close-out.

For context on F&O segment operations see F&O segment on Zerodha and How to trade futures on Kite (first time) .

When rollovers are necessary

NSE and BSE list F&O contracts for three monthly expiry cycles (current month, next month, and the month after that). Each contract expires on the last Thursday of its month. On expiry day, the contract settles: futures contracts settle to the final settlement price (the closing spot price of the underlying), and options contracts settle to their intrinsic value.