Description

BSE has released the updated list of securities eligible for trading in the Securities Lending and Borrowing (SLB) segment, including major stocks like HDFC Bank, Infosys, Kotak Mahindra Bank, and JSW Steel.

Summary

BSE has issued a revised list of scrips eligible for trading in the Securities Lending and Borrowing (SLB) segment. The list includes 62 securities from various sectors including banking, pharmaceuticals, manufacturing, metals, IT services, and consumer goods. Notable inclusions are major blue-chip stocks such as HDFC Bank, State Bank of India, Infosys, Kotak Mahindra Bank, JSW Steel, Titan Company, and Dr. Reddy’s Laboratories.

Key Points

  • The circular provides an updated list of securities eligible for Securities Lending and Borrowing (SLB) segment
  • 62 scrips are included in the revised SLB list with their scrip codes, names, symbols, and ISIN numbers
  • The list includes diverse sectors: banking (HDFC Bank, SBI, Kotak Mahindra Bank, IDBI Bank), IT (Infosys), pharmaceuticals (Cipla, Dr. Reddy’s), metals (JSW Steel, Hindustan Zinc, SAIL), and consumer goods (Titan, Dabur, Whirlpool)
  • Major PSUs are included such as BHEL, Bharat Electronics, Hindustan Petroleum, and Steel Authority of India
  • The list is provided in an Excel file format (Annexure_SLB.xlsx) attached to the circular

Regulatory Changes

This circular represents a routine update to the SLB segment eligibility list. The Securities Lending and Borrowing mechanism allows institutional investors to lend securities to borrowers for a fee, facilitating short selling and improving market liquidity. No fundamental regulatory changes are introduced; this is an administrative update of eligible securities.

Compliance Requirements

  • Market participants engaged in SLB transactions must refer to this updated list for eligible securities
  • Brokers and intermediaries should update their systems to reflect the current SLB-eligible scrips
  • Only the securities listed in this circular are permitted for lending and borrowing transactions in the SLB segment
  • Participants must ensure compliance with existing SLB framework regulations while transacting in these securities

Important Dates

  • Circular Issue Date: January 5, 2026
  • Effective Date: Not explicitly specified; typically effective immediately upon issuance

Impact Assessment

The impact of this circular is primarily operational and affects institutional investors, mutual funds, and market participants engaged in securities lending and borrowing activities. The inclusion of major liquid stocks ensures adequate liquidity in the SLB segment. This facilitates:

  • Enhanced market efficiency through securities lending mechanism
  • Improved price discovery for the listed securities
  • Availability of stocks for short selling and hedging strategies
  • Income generation opportunities for long-term holders through lending fees

The circular has low severity as it is a routine administrative update but medium impact due to its relevance for institutional trading strategies and market liquidity management.

Impact Justification

This circular updates the list of securities eligible for SLB transactions, affecting market participants engaged in securities lending and borrowing activities. The impact is operational rather than price-sensitive.