Investors can earn risk-free income of 6-8% annually by lending stocks

As a lender, you can place an order with the broker mentioning the stock, quantity to lend, period, and lending fees you expect on a per share basis

For many years, long-term investors had the option to lend their shares and earn risk-free additional income by way of interest. But due to lack of awareness and demand from borrowers, the securities lending and borrowing mechanism (SLBM) never saw any meaningful volumes. This is expected to change soon. 

On Wednesday, Securities and Exchange Board of India’s (Sebi) said that physical settlement of stock derivatives will be made mandatory in a phased manner. At present, equity derivatives are settled in cash, which means the difference between the entry price and exit price is either debited or credited in