Do you know you can earn money from your existing shares?

What This Video Is About

The video discusses the Securities Lending and Borrowing (SLB) scheme in the Indian stock market, which enables shareholders to lend their shares to other participants for a fee. This facility is particularly beneficial for long-term investors who do not plan to sell their shares.

Major Ideas Discussed

• The SLB scheme allows shareholders to lend eligible shares for an agreed period through the National Stock Exchange's (NSE) platform.
• In return, shareholders receive a lending fee, providing a passive income opportunity.
• Not every stock qualifies for the SLB scheme; usually, blue-chip stocks are eligible.
• Lending contracts can range from a few days to 12 months, during which the shareholder cannot freely sell the lent shares.
• Early recall of shares is possible but may involve additional costs.
• The scheme is secured by NS Clearing, which provides settlement safeguards.
• The SLB scheme is beneficial for long-term investors, allowing them to earn passive money from their equity shares.

What to Watch Next

Long-term investors can explore the SLB scheme as an option to generate additional income from their existing shareholdings, considering the eligibility of their stocks and the terms of the lending contracts.