Sebi Working Group Targets Custodians and Digitization to Revitalize Stock Lending

Indian Regulator Seeks to Revamp Stock Lending Framework

The Securities and Exchange Board of India (SEBI), the country's market regulator, has formed a working group to explore ways to enhance the nation's stock lending and borrowing framework. This initiative aims to increase custodian participation and digitize the Securities Lending and Borrowing Scheme (SLBS) processes, according to three sources familiar with the development.

The working group's efforts are focused on streamlining the existing framework, which currently relies on manual processes and limited digitalization. By increasing custodian participation and implementing digital solutions, the group hopes to improve the overall efficiency and transparency of the stock lending and borrowing market.

The proposed reforms are expected to have a significant impact on the Indian stock market, with the potential to reduce costs and increase liquidity for market participants. As the working group continues to deliberate on the best course of action, the Indian market regulator is poised to play a crucial role in shaping the future of the country's stock lending and borrowing framework.

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