SLBM Stock List as per FY 2025-26

Check which securities, including F&O-eligible stocks and select ETFs, you can lend

Company NameBest BIDBest OffersAnnualised Yield (% p.a.)LTP
Qty.PriceQty.Price
IREDA2561₹3.33053₹3.422.28%₹115Get Startedwishlistbuysell
LODHA86₹20.01265₹3521.88%₹1242.2Get Startedwishlistbuysell
KFINTECH48₹14.0325₹14.9911.3%₹962.1Get Startedwishlistbuysell
JUBLFOOD478₹8.51100₹912.99%₹508Get Startedwishlistbuysell
PIIND40₹20.03250₹28.99.04%₹2491.3Get Startedwishlistbuysell
NAM-INDIA500₹12.5500₹13.57.87%₹1236.1Get Startedwishlistbuysell
DIXON53₹132.0631₹1507.33%₹14830Get Startedwishlistbuysell
ASTRAL11₹14.1330₹15.018.07%₹1539.9Get Startedwishlistbuysell
BLUESTARCO325₹11.011000₹14.77.59%₹1514.5Get Startedwishlistbuysell
LTM150₹33.02100₹33.995.8%₹4551Get Startedwishlistbuysell

Benefits of Stock Renting with Choice

Why let good stocks sit idle when they can generate returns for you? Here’s what you get.

Earn Without Selling

Earn Without Selling

Collect a lending fee on stocks you plan to hold long term—no change to your position or strategy.

Exchange-Backed Settlement

Exchange-Backed Settlement

Borrowers deposit full collateral before your shares move. Settlement runs via NSCCL, so your shares stay protected.

You Stay the Owner

You Stay the Owner

Your shares are on loan, not sold. You remain the beneficial owner throughout the contract. They return to your Demat at expiry.

SEBI-Regulated

SEBI-Regulated

SLBM runs under an SEBI-approved framework. Every transaction is matched & settled via an exchange-governed process. No off-market deals.

No STT on SLBM Trades

No STT on SLBM Trades

Unlike regular equity trades, SLBM transactions are exempt from STT. This keeps your net returns cleaner.

Flexible Lending Periods

Flexible Lending Periods

Choose contract tenures ranging from 1 month to 12 months, based on how long you can lend your shares.

How to Rent Stocks via SLBM on Choice?

You need an active Demat account to participate as an SLBM lender. Here's how it works.

STEP 1

Register for SLBM

Your RM registers your client code with NSE for the SLBM segment—a one-time setup required to lend.

STEP 2

Select & Order

Your RM checks lendable stocks; you confirm stock, quantity, fee, and tenure to place a lending order.

STEP 3

Match & Transfer

When a borrower matches your offer, NSCCL matches the order and transfers shares to the borrower against collateral.

STEP 4

Return & Payment

Borrower returns shares at expiry; shares are credited back, fee credited to your Ledger on T+1 day.

What is SLBM (Stock Lending and Borrowing Mechanism)?

SLBM full form is Stock Lending and Borrowing Mechanism. In simple terms, it is a SEBI-regulated framework that allows investors to temporarily lend shares from their Demat account to other market participants in exchange for a lending fee.

 SLBM meaning put plainly is it works like renting out an asset you own. You lend your stocks for a fixed period, earn a fee while they are on loan, and get them back when the contract ends. You do not sell, and ownership never changes.

 The mechanism operates on the NSE through NSCCL (National Securities Clearing Corporation of India), which acts as the central counterparty and guarantees settlement for both sides.

 For SLBM in India, only SEBI-approved securities are permitted on NSE's platform. This includes F&O-eligible stocks, select Index-based ETFs, Liquid ETFs, and Group 1 securities meeting SEBI-defined criteria. Contract tenures range from 1 month to 12 months.

What is Stock Lending and Borrowing Mechanism

How Does Renting of Stocks Through SLBM Work?

Every SLBM transaction runs on two legs

Leg 1

Forward Leg (When Lending Begins)

The lender's shares are transferred from their Demat account to NSCCL. At the same time, the borrower deposits collateral as mandated by NSCCL, calculated based on the stock's risk parameters and prevailing market conditions. Once NSCCL confirms both sides, the borrower receives the shares.

Leg 2

Reverse Leg (When the Contract Ends)

On the agreed settlement date, the borrower returns the shares to NSCCL. NSCCL credits them back to the lender's Demat account. The lending fee is credited to the lender. The borrower gets their collateral back.

shield

Think of NSCCL as the guarantor sitting in the middle. The lender and borrower never deal directly with each other. If the borrower defaults, NSCCL conducts a buy-in auction to source the shares. If the auction fails, the transaction is financially closed out at a market-linked rate, up to 25% above the last closing price of the security.

Lender is eligible for all corporate actions. SLBM contracts expire on the first Tuesday of the month. You can choose a contract series for the current month or up to 12 months ahead, depending on your lending horizon.

Advantages of Stock Lending & Borrowing

Passive Income on Existing Holdings

Earn a lending fee on stocks you’re already holding. No selling, no change in your investment view, just an added layer of income.

Full Collateral Coverage

Borrowers deposit collateral before receiving your shares. NSCCL guarantees settlement. If the borrower defaults, the clearing corporation steps in.

Corporate Actions Still Come to You

Dividends falling during the lending period are collected by the borrower and credited to you by NSCCL at the record date. Bonus shares and rights are handled via transaction foreclosure per exchange terms. Ask your RM for specifics.

LTCG & STCG Holding Period Stays Intact

Since you remain the beneficial owner, the lending transaction does not reset your holding period for long-term capital gains purposes.

Exchange-Regulated Every Step

Every SLBM transaction runs through NSE. No bilateral arrangements, no informal counterparty risk. The exchange governs the entire process.

Early Recall if Plans Change

Changed your mind mid-contract? Place a recall order through your RM before expiry. The shares return to your Demat once settlement is processed.

Settle Delivery Without Penalties

Short on delivery? Borrow shares through SLBM to settle your obligation and avoid exchange auction penalties, which can go up to 20% above market price.

Hedge or Arbitrage with Confidence

Use borrowed shares to run arbitrage strategies across cash and derivatives segments, or to hedge positions already held in your portfolio.

Capital-Efficient Access

Instead of buying shares outright to execute a short-term strategy, borrow them for the period you need. It preserves your capital for other trades.

Known Cost, Defined Period

You know the borrowing fee and tenure upfront before you enter the trade. No open-ended commitment, no unexpected charges mid contract.

Stock Lending Calculator

Get an indicative number of what your stocks could earn through SLBM

Input Variables

VariableLabelsNotes
QNumber of Shares (Quantity)Whole numbers only; minimum 1
FLending Fee per Share (₹)Per share, for the full contract period, user-entered
PCurrent Market Price per Share (₹)Live price feed or user-entered; used for yield calculation
TContract Duration (Months)Dropdown: 1 to 12 months

Formulas

Formula 1:
Gross Lending Income

Formula 2:
Annualised Equivalent Yield

Formula 3:
Net Lending Income (after charges)

Gross Lending Income (Rs.) = Q × F

(This is to help show what the lender earns before any charges.)

Annualised Yield (%) = (F ÷ P) × (12 ÷ T) × 100

(Helps users compare SLBM returns against FDs, dividends, and other income options.)

Net Lending Income (Rs.) = Gross Lending Income - Brokerage - GST on Brokerage

(SLBM transactions attract brokerage and GST. STT does not apply. This formula is to show the net figure.)

Example: 500 shares × Rs. 8 lending fee = Rs. 4,000

Lending fee Rs. 8, market price Rs. 400, contract 1 month = (8 ÷ 400) × (12 ÷ 1) × 100 = 24% p.a. (indicative)

Where: Brokerage = Gross Lending Income × Brokerage Rate (%) GST on Brokerage = Brokerage × 18%

Our calculator provides only an indicative estimate. Actual lending fees depend on live market demand at the time of the trade and are not guaranteed. Annualised yield is for reference only and does not represent a committed or promised return. Charges shown are approximate. Past rates do not indicate future returns. Consult your RM before making any lending decisions.

Frequently Asked Questions

A stock lending scheme is a SEBI-regulated arrangement where a shareholder (the lender) temporarily transfers shares to another market participant (the borrower) for a fixed period, in exchange for a lending fee. In India, this falls under the SLBM framework operated on NSE through NSCCL. The lender earns income from the fee while retaining beneficial ownership. At the end of the contract, the shares return to the lender's Demat account. Shares return to the lender's Demat account automatically without any notifications and free of cost return on expiry.

The SLBM opportunity applies to two types of participants. Long-term investors holding F&O-eligible stocks or SLBM-approved ETFs can lend idle securities to earn a fee above their regular portfolio performance. The fee depends on demand for that stock in the SLBM segment and is agreed at the time of the trade. For traders and short sellers, the opportunity lies in accessing stocks for short selling, hedging, or fulfilling delivery obligations, without purchasing shares outright.

In SLBM, a lender instructs their broker to place a lending order on NSE's platform, specifying the stock, quantity, lending fee per share, and contract tenure. NSE matches this with a suitable borrower. On the forward leg, the lender's shares are transferred to NSCCL, which delivers them to the borrower against full collateral. At contract expiry (the reverse leg), the borrower returns the shares to NSCCL, which credits them back to the lender's Demat account. The agreed lending fee is then paid out to the lender. The lending fees are earned on T+1 day itself, and on expiry, shares are returned automatically without any charges.

The Income Tax Act, 2025, which replaced the Income Tax Act, 1961, from April 1, 2026, retains the same tax treatment for SLBM lending income. The lending fee earned is taxed as Income from Other Sources under the new Act, not as capital gains. This means the lending activity does not reset your holding period for LTCG or STCG purposes, since you remain the beneficial owner throughout. SLBM trades are also exempt from Securities Transaction Tax (STT). We recommend consulting a qualified tax advisor for guidance specific to your situation.

For lenders, the primary layer of protection comes from NSCCL's settlement guarantee and the collateral deposited by the borrower before receiving shares. If a borrower defaults, NSCCL conducts a buy-in auction to source the shares. In the rare event that the auction fails, the transaction is financially closed out at a market-linked rate. This could carry tax implications for the lender. For borrowers, the main risk is that the stock's price movement may not play out as expected during the lending period. As with any market activity, assess the risks before you participate.

All resident Indian investors with an active Demat account are eligible to participate in the SLBM segment, as either lenders or borrowers. This includes retail investors, HNIs, and institutional participants like mutual funds, insurance companies, and banks. Foreign investors (FPIs) are not permitted to participate in the SLBM segment as per current regulations.

SLBM-eligible securities include stocks available in the F&O segment, select Index-based ETFs, Liquid ETFs, and other Group 1 securities meeting SEBI-defined criteria. NSE updates the eligible list every month. You can check the latest SLBM stock list on the NSE India website, or speak with your Choice RM for the current available set.

SLBM transactions are exempt from Securities Transaction Tax (STT) and SEBI turnover charges. However, standard brokerage, applicable exchange transaction charges, and GST may apply. Speak with your Choice RM for a clear breakdown of the charges relevant to your trades. There are no applicable exchange transaction charges.