BSE Clearing introduces shorter-tenor contracts in securities lending and borrowing
Mumbai, Aug 17 (TNT): BSE Clearing Limited (BSECL), the clearing corporation of BSE, on Monday introduced three-working-day contracts in the Securities Lending and Borrowing (SLB) segment, aimed at providing greater flexibility for short-term securities borrowing and delivery requirements.
The new contracts, effective from Monday, will have a T+1 first leg and T+3 reverse leg, excluding settlement holidays. Initially, the contracts will be available for securities eligible in the Futures and Options (F&O) segment under the “D” series prefix, a release said here.
The initiative is based on the flexibility provided under the Securities and Exchange Board of India’s (SEBI) SLB framework to introduce contracts of different tenures based on the evolving requirements of market participants.
BSE Clearing said the shorter-tenor contracts could also facilitate inter-exchange arbitrage and greater price alignment across trading venues, enabling participants to respond more efficiently to temporary market opportunities.
The SLB platform will continue to operate through an automated, screen-based order matching mechanism based on price-time priority.
The contracts will not have foreclosure in the event of an AGM or EGM and will not provide facilities for Repay, Recall or Rollover.
BSE Clearing MD and CEO Vaisshali Babu said the introduction of shorter-tenor SLB contracts was an important step towards making the securities lending ecosystem more responsive to the evolving needs of market participants.
The facility, she said, would provide greater flexibility in contract tenures, support short-term securities requirements, facilitate greater price alignment and further deepen participation in the SLB market.
The shorter-tenor contracts went live on August 17, 2026, providing participants with an additional avenue for short-term securities borrowing and lending through the BSE SLB platform.
TNT KS
