Archive · 12 Nov 2025

Sebi's Stock Lending Scheme Fails to Gain Traction Due to High Costs, Low Awareness

Sebi's Stock Lending Scheme Fails to Gain Traction Due to High Costs, Low Awareness

Imagine lending out your toys so someone else can play with them for a while, and they pay you a small fee.

That's kind of like India's stock lending scheme.

People who own stocks can lend them to others who want to 'borrow' them to do special trades.

But, many people don't use this system because it's too expensive and complicated.

To borrow a stock, you have to put up a lot of money as a guarantee, pay fees, and taxes.

Plus, most people don't even know this system exists!

The company in charge of the stock market, Sebi, wants to fix this.

They are planning to make it cheaper and easier for everyone to use, hoping it will make the stock market work better.

Experts suggest lowering the fees and taxes and also telling more people about it.

Some also think it would be good to let people borrow more types of stocks and maybe change the rules for how you can trade them.

Sources