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Securities lending

Securities lending is the economic act of temporarily transferring shares to a borrower for a fee against collateral.

Lenders earn a fee; borrowers obtain shares for delivery, hedge, or settlement needs against collateral safeguards.

In India, the transparent exchange venue for equity lending and borrowing is SLBM on NSE/BSE.

This entry is the economic concept; operational matching, eligibility, and clearing sit under SLBM.

Fees fluctuate with demand to borrow each ISIN.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.