Securities Lending and Borrowing tenure extension with corporate-action adjustments to balance market functioning and risk. The circular increases SLB contract tenure and prescribes corporate-action adjustments: dividends recovered from the borrower at reverse leg and passed to the lender; stock splits result in proportional position adjustments; other corporate actions cause transaction foreclosure from the day before the ex-date with pro-rata lending fee recovery and return to the borrower. SLB session timing is extended to normal trading hours. Exchanges must adopt common risk-management practices balancing commercial viability and adequate controls, may take margins in cash and prescribed cash equivalents, and must amend rules and systems to implement these requirements.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Securities Lending and Borrowing tenure extension with corporate-action adjustments to balance market functioning and risk.
The circular increases SLB contract tenure and prescribes corporate-action adjustments: dividends recovered from the borrower at reverse leg and passed to the lender; stock splits result in proportional position adjustments; other corporate actions cause transaction foreclosure from the day before the ex-date with pro-rata lending fee recovery and return to the borrower. SLB session timing is extended to normal trading hours. Exchanges must adopt common risk-management practices balancing commercial viability and adequate controls, may take margins in cash and prescribed cash equivalents, and must amend rules and systems to implement these requirements.
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