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TMI BlogReview of Securities Lending and Borrowing (SLB) FrameworkX X X X Extracts X X X X X X X X Extracts X X X X ..... ding and Borrowing (SLB) was specified, vide SEBI circular no. MRD/DoP/SE/Dep/Cir-14/2007 dated December 20, 2007, and operationalized with effect from April 21, 2008. The SLB framework has been revised based on the feedback received from the market participants. 2. Pursuant to the feedback received from the stock exchanges and other market participants and in consultation with the Secondary Mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of number of shares; ii. No clearing member shall have open position of more than 10% of the market-wide position limit. The position limit for an Institutional Investor shall be the same as that for a clearing member; iii. The client level position limit shall not be more than 1% of the market-wide position limit. Treatment of Corporate Actions during SLB 5. Para 2 of Circular MRD/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions which is in nature of AGM/EGM, presently the AIs are mandatorily foreclosing the contracts. 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 particip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duration of the contract after taking into account rollovers shall not exceed 12 months from the date of the original contract. It is clarified that multiple rollovers of a contract by the lender or borrower is permitted. c. Rollover shall not permit netting of counter positions, i.e. netting between the 'borrowed' and 'lent' positions of a client. 7. Pursuant to the applicability of this Circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dments 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 Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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