Another attempted boost for India's SLB market
31 May 2013 Mumbai
Image: Shutterstock
Indian regulator SEBI announced that it will increase the number of stocks allowed to be borrowed and lent, in efforts to ramp up the securities lending market in the country.
Stocks that fulfill certain criteria, such as an average monthly trading turnover of at least Rs.100 crores (($17.8 million), will now be allowed to be borrowed and lent out.
It is not the first time that the regulator has attempted to relax what some as seen as particularly severe rules. In November last year, the board stated in a circular that lenders and borrowers of shares could carry forward their positions up to three months, instead of one month as is the current norm.
The “roll-over facility” states that any lender or borrower who wishes to extend an existing lent or borrow position shall be permitted to roll-over such positions for three months, although rollover shall not permit netting of counter positions.
SEBI also indicated the introduction of liquid Index Exchange Traded Funds as eligible for trading, with the ETF deemed liquid provided it has traded on at least 80 percent of the days over the past 6 months and its impact cost over the past 6 months is less than or equal to 1 percent.
Stocks that fulfill certain criteria, such as an average monthly trading turnover of at least Rs.100 crores (($17.8 million), will now be allowed to be borrowed and lent out.
It is not the first time that the regulator has attempted to relax what some as seen as particularly severe rules. In November last year, the board stated in a circular that lenders and borrowers of shares could carry forward their positions up to three months, instead of one month as is the current norm.
The “roll-over facility” states that any lender or borrower who wishes to extend an existing lent or borrow position shall be permitted to roll-over such positions for three months, although rollover shall not permit netting of counter positions.
SEBI also indicated the introduction of liquid Index Exchange Traded Funds as eligible for trading, with the ETF deemed liquid provided it has traded on at least 80 percent of the days over the past 6 months and its impact cost over the past 6 months is less than or equal to 1 percent.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
