Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Market / Stock-market-news/  NSE allows 7 ETFs to trade in SLB segment from Tuesday
BackBack

NSE allows 7 ETFs to trade in SLB segment from Tuesday

The move comes after Sebi announced that ‘liquid’ index, ETFs would be eligible for trading in the SLB segment

Under the SLB mechanism, investors can lend their idle shares to borrowers through the clearing corporation of a stock exchange to earn interest. The borrowers, on the other hand, can trade in such securities. Photo: Hemant Mishra/Mint (Hemant Mishra/Mint)Premium
Under the SLB mechanism, investors can lend their idle shares to borrowers through the clearing corporation of a stock exchange to earn interest. The borrowers, on the other hand, can trade in such securities. Photo: Hemant Mishra/Mint
(Hemant Mishra/Mint)

Mumbai: National Stock Exchange (NSE) has allowed seven exchange traded funds (ETFs), including Goldman Sachs Banking ETF and Kotak Nifty ETF, to trade in the Securities Lending and Borrowing (SLB) segment from Tuesday.

The move comes after capital markets regulator Securities and Exchange Board of India (Sebi), last year, announced that ‘liquid’ index, ETFs—track indices to trade in the short selling market—would be eligible for trading in the SLB segment.

Among other ETFs that would be available for trading in SLB segment includes IIFL Nifty ETF, Nifty Goldman Sachs ETF, Nifty JR Goldman Sach ETF, Most Shares M50 ETF and Most Shares N100 ETF.

“These index ETFs shall be made available for trading in the SLB scheme with effect from 3 September 2013," NSE said in a circular dated 30 August. With the introduction of these ETFs in the SLB segment, there would be wider participation as well as increased volumes. It would also facilitate short-selling in the ETF segment.

Under the SLB mechanism, investors can lend their idle shares to borrowers through the clearing corporation of a stock exchange to earn interest. The borrowers, on the other hand, can trade in such securities.

Generally, short selling refers to selling of a stock that is not owned by the seller at the trading time.

According to Sebi, index ETF would be considered ‘liquid’, if it has traded on at least 80% of the days over the past six months. Another criteria is that the particular Liquid Index ETF’s impact cost over the past six months is less than or equal to 1%.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 02 Sep 2013, 11:19 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App