Mutual Funds
What is Securities Lending Scheme?
Securities Lending and Borrowing is a scheme which enables lending of idle securities by the investors to the clearing corporation and earning a return through the same. For securities borrowing and lending system, clearing corporations of the stock exchange would be the nodal agency and be registered as the "Approved Intermediaries"(AIs). The clearing corporation can borrow, on behalf of the members, securities for the purpose of meeting shortfalls. The defaulter selling broker may make the delivery within the period specified by the clearing corporation. In the event of the defaulted selling broker failing to make the delivery within the specified period, the clearing corporation has to buy the securities from the open market and return the same to the lender within seven trading days. In case of an inability to purchase the securities from the market, the transaction shall be closed out.
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More from this specialization
- Where can an investor look out for information on mutual funds?
- What are the different types of mutual fund schemes?
- Where can an investor look out for information on mutual funds?
- Can non-resident Indians ( NRIs ) invest in mutual funds?
- How to choose a scheme for investment from a number of schemes available?
- When will the investor get certificate or statement of account after investing in a mutual fund?