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National Stock Exchange (NSE) has launched a roll-over facility in its securities lending and borrowing (SLB) scheme.
The new facility would allow market participants to carry forward an existing position taken in the current month by two additional months, said a statement from NSE.
This means that a position created in the June series will be allowed to carry forward to July and August.
The new facility would allow market participants to carry forward an existing position taken in the current month by two additional months, said a statement from NSE.
This means that a position created in the June series will be allowed to carry forward to July and August.
At present, a short-seller who uses the SLB mechanism is required to meet delivery obligations by returning the securities on the expiry date and then re-enter into another SLB transaction to carry forward the position. The SLB scheme is used by short-sellers who borrow securities from the exchange's platform for making delivery.
“This would also reduce cost of operations for members as they need not close expiring positions and take fresh positions, every month,” said a release from the exchange.
The exchange further added that rollover will not be allowed in contracts of stocks which are impacted by corporate actions like AGM, merger, acquisitions, among others. This year more than 5 crores shares have been traded in the SLB window till 22 May 2015, NSE said in its statement.
