Transparency, easier norms to boost SLB volumes: Experts

TRANSPARENT PROFIT AND loss metrics from brokers,along with regulations to lower margin costs, are needed to ignite interestin the securities lending and borrowing (SLB) segment, according to industry experts.

- ANANYA GROVER

They said most of the shorting happens through the stock futures route because of higher liquidity,and regulations on collateral are opaque.

Amarket participant said. “Vibrant stock futures market is coming in the way of SLB.” He added that regulations are not very clear on taking security on loan and holding for long term forfuture selling opportunities. He highlighted the need for synchronisation between clearing corporations which act as counterparties for both lenders and borrowers.

NSE data show that in the past month just 71,959 trades happened in this segment of the exchange across stocks and the traded quantity was 114.9 million.