SLBM on Dhan: Stock Lending for Retail Investors
Why in the news
In November 2025 Dhan introduced SLBM on its app, so retail investors can lend unused holdings and earn a fee without selling.
About SLBM
A SEBI framework for lending or borrowing securities for a fixed period on a recognised exchange. Borrowers use the shares for short selling, arbitrage or hedging. It is exchange-driven, so it is transparent and compliant.
| Element | Detail |
|---|---|
| Lender | Shareholder lending for a fee |
| Borrower | Trader or institution needing shares |
| Intermediary | Clearing corporation (e.g. NSE Clearing) as guarantor |
| Tenure | 1 day to 12 months |
| Safeguards | Clearing corporation handles collateral, margins, settlement |
| Returns | Borrower pays the fee and returns the same number of shares |
Exam angle
- Framework introduced by SEBI.
- Tenure: 1 day to 12 months.