Leading bourse BSE will add 11 companies including Fortis Healthcare, Gujarat State Fertilizers & Chemicals and Nestle India in securities lending and borrowing (SLB) segment from next month. The other eight firms are Mangalore Refinery & Petrochemicals, Berger Paints India, Can Fin Homes, V-Guard Industries, Godfrey Phillips India, Balrampur Chini Mills, Raymond and Balkrishna Industries. In a circular, BSE said these eleven securities will be available for trading in the SLB segment with effect from May 5, 2017. SLB mechanism allows short sellers to borrow securities for making deliveries.
There are more than 200 companies in the BSE SLB segment. As per an earlier circular of the exchange, these companies will also be available for trading in the equity derivatives segment from April 28. According to Sebi guidelines, shares with an average monthly trading turnover of Rs 100 crore or more in the previous six months are eligible for trading in SLB segment. Besides, shares with market-wide position limit (which indicates the investors interest in a share) of at least Rs 100 crore are also eligible for the inclusion in SLB scheme.