In this video, Aastha Khurana explains the Securities Lending & Borrowing Mechanism (SLBM)—a way to earn extra income from your idle stocks or borrow shares to trade. She walks through the process, the impact of corporate actions, benefits and risks for both lenders and borrowers, as well as key aspects like taxation, charges, and returns. If you’ve ever wondered how to place SLBM orders or whether it’s right for you, this video covers it all in simple terms.
Time Stamps
00:00 Introduction
00:46 What is the Securities Lending & Borrowing Mechanism (SLBM)?
01:10 SLBM Process
03:44 Impact of Corporate Actions
05:11 SLBM Benefits to a Lender
05:30 SLBM Risks to a Lender
06:50 SLBM Benefits to a Borrower
10:01 SLBM Risks to a Borrower
11:40 Additional Features – Taxation, Charges, Returns & Volumes
14:00 How to place SLBM orders?
14:42 Things to Remember
15:07 Conclusion
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No need of this many new wives
Why will anyone borrow? Is this for ppl who want to broadcast their portfolio or something like that? What's the benefit for the borrower.
Very nice, knowledgeable
hindi pl
Charges/fees you’ll pay
With Zerodha:
Processing charge on a SLB lending transaction: 20% of the lending/borrowing price.
Example: If you earn ₹1,000 from lending, fee = 20% of ₹1,000 = ₹200.
Plus GST (18%) on that processing fee.
Continuing example: GST = 18% of ₹200 = ₹36 → total fee ₹236.
There may also be depository / DP charges when the share is moved out from your demat to settlement. Zerodha’s FAQ mentions DP charge of ~ ₹13 + GST when shares are moved.
You will also need to consider tax implications (income you earn from lending may be taxable).
Everybody talks about SLBM. I am staying in Calicut city, Kerala n nobody (DPs) has even heard about SLBM. Appreciate any brokers who do SLBM!!
Shame on Zerodha – enabling biggest wealth transfer from poor Indians to Jane Street. You are making money off the suffering of people. Shame on you!
You have blood on your hands. Shame on Kamath bros selling out their own country to Jane Street. Have a conscience!
But how to place orders
Dhan has integrated slbm on their trading application