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BSE Clearing introduces shorter-tenor contracts in SLB
17 August 2026 India
Image: avrezn/stock.adobe.com
BSE Clearing, a wholly owned subsidiary and clearing arm of Bombay Stock Exchange, has introduced three‑working‑day contracts in the securities lending and borrowing (SLB) segment.
The initiative builds on the flexibility provided under the Securities and Exchange Board of India's (SEBI’s) SLB framework, which allows the introduction of contracts with different tenures based on the evolving needs of market participants.
The shorter‑tenor contracts will provide greater flexibility for short‑term securities borrowings and delivery requirements, while supporting a deeper, more efficient SLB ecosystem.
The contracts will operate with a T+1 first leg and a T+3 reverse leg, excluding settlement holidays, and will initially be available for securities in the futures and options segment under the “D” series prefix.
Additionally, the shorter tenor can support inter‑exchange arbitrage and greater price alignment across trading venues, enabling participants to respond more efficiently to temporary market opportunities.
The SLB platform will continue to operate through an automated, screen‑based order‑matching mechanism based on price‑time priority.
There will be no foreclosure in the event of an AGM or EGM, and the contracts will not include facilities for repay, recall, or rollover.
Vaisshali Babu, managing director and CEO, BSE Clearing, says: “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.
“By providing greater flexibility in contract tenures, the facility will support short-term securities requirements, facilitate greater price alignment, and further deepen participation in the SLB market.”
The shorter‑tenor contracts went live on 17 August 2026, providing market participants with an additional avenue for short‑term securities borrowing and lending through the BSE SLB platform.
The initiative builds on the flexibility provided under the Securities and Exchange Board of India's (SEBI’s) SLB framework, which allows the introduction of contracts with different tenures based on the evolving needs of market participants.
The shorter‑tenor contracts will provide greater flexibility for short‑term securities borrowings and delivery requirements, while supporting a deeper, more efficient SLB ecosystem.
The contracts will operate with a T+1 first leg and a T+3 reverse leg, excluding settlement holidays, and will initially be available for securities in the futures and options segment under the “D” series prefix.
Additionally, the shorter tenor can support inter‑exchange arbitrage and greater price alignment across trading venues, enabling participants to respond more efficiently to temporary market opportunities.
The SLB platform will continue to operate through an automated, screen‑based order‑matching mechanism based on price‑time priority.
There will be no foreclosure in the event of an AGM or EGM, and the contracts will not include facilities for repay, recall, or rollover.
Vaisshali Babu, managing director and CEO, BSE Clearing, says: “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.
“By providing greater flexibility in contract tenures, the facility will support short-term securities requirements, facilitate greater price alignment, and further deepen participation in the SLB market.”
The shorter‑tenor contracts went live on 17 August 2026, providing market participants with an additional avenue for short‑term securities borrowing and lending through the BSE SLB platform.
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