Short Selling 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.

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.

STBT and why Zerodha does not allow it

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

STBT (Sell Today Buy Tomorrow) refers to a trading strategy in which a market participant sells equity shares today without owning them and buys them back on the following trading day, profiting from an anticipated fall in the share price overnight. In contrast to BTST (Buy Today Sell Tomorrow), which is mechanically feasible under India’s settlement system, STBT is not permitted for retail investors in India’s equity cash segment under current SEBI regulations. Zerodha, in accordance with these rules, does not provide STBT functionality on its Kite platform.