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Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MRD/MRD-POD-2/P/CIR/2023/41 March 27, 2023
To
All Recognized Stock Exchanges, Depositories and Clearing Corporations
Dear Sir/ Madam,
Sub: Amendment to Securities Lending Scheme, 1997
1. SEBI, vide Circular No. SMD/POLICY/SL/CIR-09/97 dated May 07, 1997 introduced the
Securities Lending Scheme to facilitate securities settlement. Further, to enable
settlement of securities sold short, SEBI vide Circular No. MRD/DoP/SE/Dep/Cir-
14/2007 dated December 20, 2007 has, inter-alia, decided to put in place a full-fledged
securities lending and borrowing (SLB) scheme under the over-all framework of
Securities Lending Scheme, 1997. The SLB framework has been subsequently modified
from time to time.
2. SEBI Board in its meeting held on December 20, 2022 has approved to amend SEBI
Regulations & guidelines to dispense with the option of payment through Demand Draft
and ensure that the payment of fees /penalties/recoveries to be made only through digital
mode of payment.
3. In pursuance thereof, it has been decided to introduce the following changes in the
Securities Lending Scheme, 1997:
a) Point 7 under Annexure-B (Schedule of Fees) stands modified and be read as
follows:
“7. Approved intermediaries are requested to send the fee payable, as
stated above by way of direct credit into the bank account through
NEFT/RTGS/IMPS or online payment using the SEBI payment gateway or
any other mode as may be specified by SEBI from time to time”
b) Point 8 under Annexure-B stands modified and read as follows:
“8. A receipt shall be sent to the approved intermediaries after the
realization of the payment through the any of the modes specified at
Point 7”
4. SEBI circular dated May 07, 1997 shall, accordingly, be modified to the above extent.
All other provisions of the said SEBI circulars shall continue to remain applicable.
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Securities and Exchange Board of India
5. The provisions of this circular shall come into effect from April 01, 2023.
6. Stock Exchanges and Clearing Corporations are directed to:
a) take necessary steps to put in place systems for implementation of the circular,
including necessary amendments to the relevant bye-laws, rules and regulations;
b) bring the provisions of this circular to the notice of their members and also
disseminate the same on their websites; and
c) confirm to SEBI, that the provisions of this circular have been implemented.
7. This circular is being issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992, read with Section 10 of the Securities
Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to
promote the development of, and to regulate the securities market.
8. This circular is available on SEBI website at www.sebi.gov.in at “Legal→Circulars”.
Yours faithfully
(Vishal Shukla)
General Manager
Market Regulation Department
Email: vishals@sebi.gov.in
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