BSE launches 3-day SLB contracts to boost short-term securities borrowing

BSE Clearing has introduced 3-working-day contracts in the securities lending and borrowing segment, giving market participants a shorter window to borrow and lend securities for near-term requirements. The new contracts went live on August 17, 2026, the clearing corporation said in a media release. BSE Clearing is the clearing corporation of BSE.

The move is aimed at adding more flexibility to the securities lending and borrowing market, also known as SLB. The shorter-tenor product will help participants meet short-term securities borrowing and delivery needs, while supporting a deeper and more efficient SLB ecosystem.

The new contracts will have a T+1 first leg and a T+3 reverse leg, excluding settlement holidays. They will initially be available for securities in the futures and options segment under the “D” series prefix.


SLB allows investors holding shares to lend them for a fee, while borrowers can use the shares to meet settlement or trading-related needs. A shorter contract can help traders and institutions manage temporary borrowing needs without locking into longer-tenor contracts.

BSE Clearing said the shorter tenor can also support inter-exchange arbitrage and better price alignment across trading venues. This could help market participants respond more efficiently to short-term price differences between exchanges.

The SLB platform will continue to operate through an automated, screen-based order matching system based on price-time priority. BSE Clearing said there will be no foreclosure in the event of an annual general meeting or extraordinary general meeting. The contracts will also not have a facility for repayment, recall or rollover.

Vaisshali Babu, MD and CEO of BSE Clearing, said the launch is aimed at making the securities lending market more responsive to the changing needs of participants. "The introduction of shorter-tenor SLB contracts is an important step towards making the securities lending ecosystem more responsive to the evolving needs of market participants," Babu said.

She said the facility will support short-term securities requirements, help price alignment and deepen participation in the SLB market.

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