Goodwill Wealth Management | Security Lending and Borrowing
  • BUSINESS ENQUIRY : +91 80122 78000
      CUSTOMER SUPPORT : 044 4032 9999
Open Demat Account Online - GWC India
  • BUSINESS ENQUIRY : +91 80122 78000   CUSTOMER SUPPORT : 044 4032 9999
USEFUL
TOOLS

Borrowing Lending

Security Lending and Borrowing :
  • Securities Lending & Borrowing is an opportunity for the lender to earn a lending fee for the stocks lend and borrower to get temporary loan of stocks which they do not own.
What is the Benefit :
  • Additional Income – Goodwill Clients can generates an additional Income on the stocks that the client holds
  • Short Selling – Goodwill Clients can Short sell the stocks by borrowing in the market during market downturn
  • No Counter party risk – Securities lending and borrowing transactions are guaranteed by Goodwill clearing member ( NSE Clearing Ltd )
How does it works :
For example, you have a negative view on the price of a stock. You can borrow shares from SLB and sell them. You can buy them back if and when the price falls. Your profit is the difference between the selling price and the buying price, after deducting the interest rate.
  • Lender View : For Ex, you have 100 shares of HDFC Bank in your portfolio which are lying idle. As an Investor you can lend that shares for a specific price and period
  • Borrower View : For Ex, you have a negative view on the price of a stock. So you can borrow shares from SLB and sell them. You can buy them back if and when the price falls. So his profit is the difference between the selling price and the buying price, after deducting the interest rate
How to Participate in SLB :
  • Clients should first get registered in SLB Segment ( No registration fee applicable)
  • After registration, clients should inform their RM about the stocks which they intent to lend
  • Goodwill, On behalf of their clients will place the request on the SLB trading platform
Frequently asked questions (FAQ):
  • How many stocks eligible for SLB segment
    There are current 342 stocks available on the NSE Stock Lending and Borrowing platform. The list is updated on a monthly basis by the NSE.
  • How shall I quote the lending fee
    Lending fee is quoted on per share basis. The fee depends on the demand for the shares, there is no set rule for this. Higher the demand, the more the lender can ask for every share lent.
  • What is the minimum and Maximum lending period
    Min lending period is 1 Month and Max is 12 months
  • How can I register as a participant in SLB
    If you have an existing trading account with Goodwill Wealth Management Pvt Ltd., you can avail stock lending or stock borrowing privilege by simply following the link www.gwcindia.in->Quick Links->New Segment Activation or by signing the physical copy of the terms and conditions. You can submit the signed copy to the nearest Goodwill Wealth Management Pvt Ltd branch or courier it to our customer care department address as follows,

    Goodwill Wealth Management Pvt Ltd.
    New No #9, Old No #4/1, 2nd Floor,
    Masha Allah Building,
    Bheema Sena Garden Street,
    Mylapore, Chennai,TamilNadu - 600 004.
Attention Investor
KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. Prevent Unauthorized Transactions in your Demat account\Trading account: Update your Mobile Number with your Depository Participant\Exchange. Receive alerts on your Registered Mobile for all debit and other important transactions in your Demat account\Trading account directly from Depository\Exchange on the same day.........issued in the interest of investors.
The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person or persons for any acts of omission or commission, errors, mistakes and/or violation, actual or perceived, by us or our partners, agents, associates etc., of any of the Rules, Regulations, Bye-laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time. The Stock Exchange, Mumbai is not answerable, responsible or liable for any information on this Website or for any services rendered by our employees, our servants, and us.
Please DO NOT disclose your User ID and/or Passwords to any person, even Goodwill staff never ask you to share the same. Goodwill is NEITHER liable for any loss arising from your sharing of your password with anyone, NOR from its consequent unauthorized use.
Risk Disclosures
on Derivatives
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

Source:

SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.