SLB mechanism allows short sellers to borrow securities for making delivery. The roll-over facility in the SLB session will be available for a three-month period (original contract plus two roll-over contracts).
Under this facility, lenders of securities would be allowed to extend an existing position. It means that lenders who are due to receive securities can now extend the period of lending.
Similarly, a borrower who has to return borrowed securities can extend the period of borrowing.
Earlier in May, National Stock Exchange (NSE) launched a roll-over facility in its SLB scheme.
Currently, the country's SLB market is very shallow.
In November 2012, capital markets regulator Securities and Exchange Board of India (Sebi) had allowed roll-over facility in SLB scheme.
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