What is Securities Lending and Borrowing (SLB) and how to avail it?

What is Securities Lending and Borrowing (SLB) and how to avail it?

Securities Lending and Borrowing (SLB) is a mechanism through which clients can lend or borrow securities at a specified price and time. Lenders and borrowers can quote a lending fee and quantity at which they want to lend or borrow, and the order will be executed if the quotes match at the exchange.

Why borrow securities?

Borrow and sell the stock immediately or short sell if the view is that the price of stock will go down over a period of time.

Take advantage of arbitrage opportunities when futures or options are mispriced.

To fulfil physical delivery obligations for F&O trades.