When the market goes through a lot of volatility, a percentage of the risk averse investors would cease their trading activities for a while and wait for the markets to be steady again to resume trading. During such times an investor would then decide on what to do with the stocks that he has already purchased, luckily there is the option of Securities lending and borrowing of stocks which allows investors to make money by safely lending their bought stocks to other traders to carry out trading.
So dear investor, if you are currently in possession of stocks which are just lying idle just because you don’t want to trade in the current market scenario, why not make some money by letting the same stocks make money for you.
This service that is provided is under the Securities lending and borrowing scheme, which allows Investors to lend a certain number of their stocks through the exchange which acts like an Intermediary is called Securities lending and borrowing.
The exchange here plays the role of a good intermediary, and takes the responsibility of being accountable to the owner for the borrowing done by the borrower.
Even though securities lending and borrowing has been there in India for a significant period of time, most investors have still not got acknowledged of the potential it has, and are still just sitting on piles of stocks that they wouldn’t want to risk themselves trading.
SLBS allows their risk to be traded off to another party who is willing to trade in the market but is in need of shares to trade. Investors should be wise and make the first effort towards moving out of the comfort zone and to make use of the stocks that they worked so hard to purchase.
We here at Sushil Finance, do provide the provision of SLBS trading and have a dedicated team of relationship managers to guide the willing investor on how to go about making money, without taking risk on losing his stocks.
Disclaimer:
1. Views as are mentioned in the article are personal views of Author and nothing to link with Co., its Director and Employees.
2. All investments are subject to market risk and you need to consult your financial advisor/consultant before investment
