Securities Lending on WebNotes

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.