Review of Securities Lending and Borrowing (SLB) Framework

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..... ant to the feedback received from the stock exchanges and other market participants and in consultation with the Secondary Market Advisory Committee (SMAC), the framework for SLB is now modified as under: Tenure of the Contract 3. SEBI Circular MRD/DoP/SE/DeP/Cir-01/ 2010 dated January 6, 2010, allows the Approved Intermediaries (AI) to decide the tenure of the contract subject to the condition that the maximum period of the contract is not more than 12 months. In this regard, it is clarified that AIs can introduce contracts of different tenures ranging from 1 day to 12 months based on the need of the market participants. Position Limit in SLB 4. Para 12 of Annexure 2 of SEBI Circular MRD/DoP/SE/DeP/Cir-14/ 2007 dated Decemb .....

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..... tracts. It has been represented by market participants that mandatory foreclosure during the life of the contract may not be necessary as, all lenders may not be interested in taking part in the AGM/EGM. It has therefore been decided that the AIs shall provide the following facilities to the market participants: a. Contracts which shall continue to be mandatorily foreclosed in the event of AGM/EGM. b. Contracts which shall not be foreclosed in the event of AGM/EGM. Rollover Facility 6. Para 1.1 of Circular CIR/MRD/DP/30/2012 dated November 22, 2012 on Introduction of roll-over facility stands modified as under: a. Any lender or borrower who wishes to extend an existing lent or borrow position shall be permitted to roll-over .....

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..... entation of the above provisions of this circular. ii. Make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision. iii. Bring the provisions of this circular to the notice of the stock brokers/trading members, clearing members and depositories participants and disseminate the same on their website. 10. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully Susanta Kumar Das Deputy General .....

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