NEW DELHI, June 2: Leading bourse National Stock Exchange will levy a fee on transactions executed in securities lending and borrowing (SLB) scheme from next month.
“It has been decided that transaction charges will be levied on a monthly basis on the transactions executed in SLB scheme at the rate of 2.5 per cent of the lending fee, on each instance of fresh lend, borrow and rollover transactions, to both lending and borrowing participants,” NSE said in a circular. It will be effective from July 1.
The SLB mechanism allows short sellers to borrow securities for making delivery. Short selling means selling of a stock that the seller does not own at the time of trade.
Last month, NSE had asked market participants to ensure that they do not indulge in self-transactions in the SLB segment. (PTI)
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