NSE asks investors not to indulge in self-transactions of SLB

Leading stock exchange NSE has asked market participants to ensure that they do not indulge in self-transactions in the securities lending and borrowing (SLB) segment.

The directives are in line with the exchange's implementation of prevention of self-trades in capital market, futures and options as well as currency derivative segment.

"Participants are notified to ensure non execution of self-transactions in the Securities Lending & Borrowing Scheme of National Securities Clearing Corporation Ltd," the National Stock Exchange (NSE) said in a circular dated May 19.

Self-transactions refer to trading activity resulting from matching between a buy and a sell order entered in the same order book by a participant for the same client code originating from same or different trading terminals of the participants.
 

These transactions include proprietary and client transactions.

The stock exchange had introduced a new facility to check self-trades, in the equity, currency derivatives and Futures and Options segments, last year.

The SLB mechanism allows short sellers to borrow securities for making delivery.

Short selling means selling of a stock that the seller does not own at the time of trade.