The Securities and Exchange Board of India has introduced rollover facility in the securities lending and borrowing (SLB) scheme.
With this, lenders of securities would be allowed to extend an existing position, i.e., lenders who are due to receive securities can now extend the period of lending.
Borrowers would be permitted to extend their existing positions, i.e., he can extend his period of borrowing.
The rollover facility will be a part of the existing SLB session and would be available for a three-month period (original contract plus two rollover contracts).
However, rollover cannot be used to net-out existing lent and borrowed positions of a client.
SEBI has also allowed liquid index ETFs under the SLB scheme. SEBI said that index ETFs that have been traded for at least 80 per cent of the days in the last six months and have a maximum impact cost of 1 per cent are deemed to be liquid.
Impact cost is the cost incurred to execute a trade on the exchange.