What is SLBM?
SLBM (Stock Lending and Borrowing Mechanism) is a regulated platform by SEBI that lets you lend your idle shares in the stock market and earn interest from borrowers.It’s a smart way to generate passive income without selling your holdings. Whether you’re a long-term investor or a short-term trader, SLBM helps you make the most of your portfolio.
Why Use SLBM?
Extra Income
Earn Extra Returns on stocks lying idle in your Demat
Retain Ownership
you continue to enjoy corporate benefits like dividends and bonuses
Real-time updates
we handle matching and tracking whilst you choose lending terms
SEBI-Regulated
safe, secure, and transparent
How Does SLBM Work?
| Step 01 |
| You lend your stocks via SLBM to a borrower (like traders or institutions) |
| Step 02 |
| They return the shares after a fixed period |
| Step 03 |
| You earn lending fees (like interest) for the duration |
You can lend for different tenures – from a few days to months – and the rates vary based on demand.
Who Should Use SLBM?
Anyone with a Demat account and eligible stocks can use SLBM.
All you need is to activate the SLBM segment through and you’re good to go
SLBM (Stock Lending and Borrowing Mechanism) is ideal if:
✅You have shares in your Demat account that you plan to hold long-term.
✅You want to earn extra income without selling or actively trading.
✅You’re not a frequent trader, but still want your idle stocks to earn for you.
✅You prefer safe and regulated options. SLBM is fully backed by SEBI.
✅You like zero-effort earnings once activated, the system runs on its own.
Whether you’re a first-time investor or an experienced one, SLBM is a smart and simple way to earn more from your portfolio.
Frequently Asked Questions
What is SLBM?
SLBM lets you lend the stocks you already own and earn extra income on them. Instead of sitting idle in your portfolio, your shares can work for you while you continue to hold them.
How does SLBM work?
You lend your shares through an exchange-backed system for a fixed period. In return, you earn a fee, and once the period ends, the shares are returned to your account.
Who can use SLBM?
If you hold eligible stocks in your demat account, you can lend them through SLBM. Borrowers are typically traders who need shares for short selling or settlement needs.
Why would I lend my shares?
It’s a simple way to generate passive income without selling your investments. Your long-term holdings can continue to grow while earning you an additional return.
Is SLBM safe?
SLBM is regulated by stock exchanges and includes safeguards like margins to manage risk. That said, it’s still important to understand how the mechanism works before participating.
Do I still own my shares when I lend them?
Yes, you remain the owner of the shares throughout the lending period. You’ll get the same quantity of shares back once the contract ends.
Can I get my shares back early?
In most cases, you can recall your shares before the contract ends, depending on exchange rules. Once they’re back in your account, you’re free to sell or use them.
