The thumbnail for this video uses elements (the logo & background) from my favourite musical - RENT. Brilliantly written & composed by Jonathan Larson, it tells the story of a group of impoverished young artists struggling to survive and create a life in Lower Manhattan’s East Village. The musical is the 11th longest running show on Broadway with over 5,000 performances, has won numerous awards & grossed over $280 million RENT is one of those musicals that you’ll either love or hate. It has 42 songs - and I remember every one of them :) .. here’s a ranked list of my favourites: 1. I’ll Cover You (Reprise) 2. Seasons of Love 3. La Vie Boheme 4. Goodbye Love 5. Another Day 6. One Song Glory The show was adapted into a motion picture featuring six of the eight principal cast members from the 1996 stage premiere. It should be available in some streaming service. And that’s the story behind this thumbnail :)
My God!, I am hearing this concept for the first time. Even after being well-versed in the stock market, I didn't know about this. There is a lot to learn in the market. Thank you Shankarji!
Eye opener!! I am learning about something called SLBM for the first time and I have been dabbling with the markets for the last 7 years. Thanks so much for sharing invaluable knowlege. If you are going to do a detailed video with a real example, we would all benefit more and get confident enough to to try. Thanks again.
Very informative content. This is for the first time I came to know about lending and borrowing of shares permitted legally. The purpose of learning is to know new things every day. That purpose is served today.
Great job Shankar!! This is something new for me, didn't know about the SLB mechanism at all!! Although on checking the list, non of the shares in my holding are being demanded by borrowers, I guess will have to keep checking form time to time. Also it would be great , if you could show with example , how to go about doing this on any of the brokerage platforms you mentioned..Looking forward to your videos!!
Very informative content, heard about SLBM sometime back and wanted to try it myself but was never able to due to lack of knowledge. Will surely try now after watching your video Shankar and super knowledge share 👍
This is precise, to-the-point, Comprehensive, Value adding-Wishing this channel should reach a million subscribers in next 2 months. Many thanks Mr Shankar Nath & to the entire team for such an insightful video on SLBM.❤
For the first time hearing such a wonderful concept. I have been in share market since Corona but did not such a wonderful concept.will explore this one.
Glad you liked it! Kartar, Kunal & Akhil were surprised as they didn't know anything about me mentioning them (Rohit knew as he's the one who edited this video)
A long time ago, I searched about SLBM...But everyone was giving half information which is totally confused me..😢..But Now this is 100% Clear for me..😊.. Thanks a Lot ❤
I wish this process of SLB becomes more streamlined so that retail investors can increase participation ... in the US its much more easier for a retail individual to lend their shares and the market is also more liquid for SLB...
Hi Shankar, loved the coverage of new concept in your video. Though i am still confused over what happens if the borrower is unable to pay back in the process of failed short selling.
Have few questions on this 1. Can we sell stock in between , would there be any additional process involved 2. Can we buy and sell options and perform stock settlement them on expiry
I'm sorry, these are a bit procedural and your brokerage will be in a better position to answer these. May I request you to check with their customer service. I've heard that different brokers might have slightly different rules so please watch out for that too
Zerodha is charging 20% + GST for SLB. Seems way to high. Has anyone come across a more reasonable broker? I am also wondering do Mutual funds use this to generate extra return? Is that passed onto investor ? This way index funds should easily beat the index. Am I missing something ?
@shankarnath thanks a lot for sharing the link also. One question for you, if I make a HUF with my family how are the tax implications done? Is it taxed both myself and HUF as well both? When can one reduce taxes with Huf can you make video on Huf how to use this and get the most benefits out of huf as I'm already tax payer under 30% slab
I am a big fan of yours and would like to meet you some day. Were you in Bengaluru Sarjapur area few months back. I believe I saw you near that area while in a cab and hence could not stop.
Most welcome. Sorry, I have no idea on pledged share; you'll have to check with your broker. I did read in a Zerodha page that pledged shares cannot be lent under SLBM. Link: support.zerodha.com/category/trading-and-markets/trading-faqs/securities-lending-and-borrowing/articles/lending-pledged-shares-slb#:~:text=No%2C%20pledged%20shares%20cannot%20be,credited%20to%20the%20borrower's%20account.
I knew something like this would be there but always hesitate to ask.I am using this feature on crypto though from past 4 yrs especially on kucoin exchange anyways nice content thnks for info
Very informative insight... thank you...i am active in stock market since 18 months... recently i get to know something about black market (DABBA MARKET) in gujrat...can you make a video on that just for educational purpose ?
Something like this concept "Vauld" has done we buy Crypto and giving interest in happy scenario everything will be fine if it did not worked bankrupted. In the above video if borrower got loss in shortsell then what? If loss is more which include 1%? Can you please explain same scenario in 25 Lakhs or Crores of rupees instead of thousands Thank you
What about the long term / short term holding period and tax applicability for the lender as everytime shares are credited to demat, holding period starts from that date. One may lose long term benefits despite holding the the stock for years if he/she ends up selling it soon after leading it and getting it back?
@@shankarnath I saw that. I will watch once again to see if I missed the point. What I am saying is: When I lend my shares it goes out of my demat and comes back later when the contract ends. Suppose, I bought 100 shares of Icici bank on 1st April 2022. I lend these shares from 1st Jan 2023 to 31st March 2023. Get them back in my demat on 1st April 2023 and decide to sell them at profit. Ltcg should apply in this case. But, brokers platform would calculate the taxation based on demat credit / debit date.
@@sauravkataruka1 When shares are lent out, you are still the owner of the shares ("lent" is not sale). So technically, you bought on 01.04.2022 and sold say, on 01.08.2023 .. then its 16 months which means LTCG applies.
Thx for sharing, I didn't know this either. I guess since this is not mainstream no one has automated it with tech. That's probably why they have large tickets. But 1.5 cr is definitely high
Very good information and presentation sir. I want know that if the borrower of the shares from lender lose his money while short selling bor anything he made, then how he can pay the respective percentage of amount which he adhered.
Slbm under for stock give to lending but here limit price one lakh. this one lakh which type show here mean (invest amount+profit) ya only invest amount need here for lending process.
On thinking about this a little more, I think I can understand that being offline, there just seems to be too much friction in the setup to justify what are essentially very small returns like 1%. Are there any plans on bringing the mechanism online? If there is, there might be some interest in pursuing the same.
@@shankarnath I meant is the period of renting out of the share considered in continuous holding of the share for the lender to qualify for LT capital gain.
Hi..Thanks for informative video. However, this thing might not be very lucrative because of the charges involved. 20% in case of zerodha is very high. Approx one month lending fee will go to zerodha only and since one /two month options are most liquid, there is hardly anything for the lender. Of course, this changes when the lender has large number of shares.
I look at it slightly different. So there are 2 scenarios in front of me right now -- a) Scenario 1 - I have say 1 crore of stocks that I want to keep for long-term and I don't put in an SLBM setup. Means I'll make 0 rupees (ofcourse I'll make dividend & capital appreciation) b) Scenario 2 - I put it on SLBM of say, 2%. I pay 20% of that as commission - which leaves me with 1.6%. So that's 1.6% of 1 crores i.e. 1.6 lakh rupees. Plus dividend & capital appreciation Even if the scenario 2 numbers are lower like only 1.5% borrowing cost & 30% commission etc., even then the number will be more than zero. When I first looked at it -- it seemed like free money. Is there some other scenario you meant which might be more lucrative? I'm keen to know.
@@bideshroy486 Agree . Groww does not provide SLB facility. Is it a good option to move to another discount broker who offers SLB ?What's your opinion ?
I'm not sure but this news item really caught my interest wherein on a single day, investors borrowed 95,99,987 shares of YES Bank worth Rs. 5.9 crore for an interest rate of around Rs 7 per share. So there is tactical opportunism here but in my view, the people using this route (as a part of turnover) is little. But come to think of it, therein lies the opportunity and if everyone starts doing this, the extra income will diminish
I might have missed the main point here, can someone explain to me, why would someone borrow the shares and not buy them? Is it only to avoid the charges?
The thumbnail for this video uses elements (the logo & background) from my favourite musical - RENT. Brilliantly written & composed by Jonathan Larson, it tells the story of a group of impoverished young artists struggling to survive and create a life in Lower Manhattan’s East Village. The musical is the 11th longest running show on Broadway with over 5,000 performances, has won numerous awards & grossed over $280 million
RENT is one of those musicals that you’ll either love or hate. It has 42 songs - and I remember every one of them :) .. here’s a ranked list of my favourites:
1. I’ll Cover You (Reprise)
2. Seasons of Love
3. La Vie Boheme
4. Goodbye Love
5. Another Day
6. One Song Glory
The show was adapted into a motion picture featuring six of the eight principal cast members from the 1996 stage premiere. It should be available in some streaming service.
And that’s the story behind this thumbnail :)
Mo❤I
Please let me know how to Use SLBM on groww
You got information about how to activate on groww
My God!, I am hearing this concept for the first time. Even after being well-versed in the stock market, I didn't know about this. There is a lot to learn in the market. Thank you Shankarji!
Glad it was helpful! Most welcome 🙌
Agree! Same here
can't agree more, I think till now it was missed opportunity as I am a long term investor and I could have made extra bucks
It was actually there in foreign countries
been in the market for many years but still learnt something new today. Kudos to you team
Glad to hear that! 🙌
You never fail to deliver knowledge that helps the individual retailer thrive in the financial markets. Quality stuff!!
Glad you think so! Happy to know that my content helps people understand investing better.
Ur channel is very underrated sir... Infact you are very underrated... Please keep on doing this kind of informative videos...
So nice of you. Thank you very much 😊
Eye opener!! I am learning about something called SLBM for the first time and I have been dabbling with the markets for the last 7 years. Thanks so much for sharing invaluable knowlege. If you are going to do a detailed video with a real example, we would all benefit more and get confident enough to to try. Thanks again.
Thank you for the appreciation & suggestion
Very informative content. This is for the first time I came to know about lending and borrowing of shares permitted legally. The purpose of learning is to know new things every day. That purpose is served today.
Glad you found it helpful!
Some real knowledge being shared in this channel. Time and again. Great work by the team
Much appreciated! Thank you very much for your kind appreciation
Great job Shankar!! This is something new for me, didn't know about the SLB mechanism at all!! Although on checking the list, non of the shares in my holding are being demanded by borrowers, I guess will have to keep checking form time to time. Also it would be great , if you could show with example , how to go about doing this on any of the brokerage platforms you mentioned..Looking forward to your videos!!
Thank you for the suggestion!
Thanks
Thank you very much Murali ji for your kind appreciation. I'm happy you found this video informative; thx for the gesture! 🙌
Very informative content, heard about SLBM sometime back and wanted to try it myself but was never able to due to lack of knowledge. Will surely try now after watching your video Shankar and super knowledge share 👍
Great to hear! Yes, even I knew nothing about it .. but upon research, many of the big and small parts of it got clarified.
Thats calls a knowledge and information... I haven't expected such things to exist ... I immediately subscribed to the channel. 😊
Welcome aboard! Glad you liked my work
Very kind person you are, for sharing your team members contributions. That's really great and completely new to me about this topic. Great.
Thank you very much and I'm glad the video was helpful!
This is precise, to-the-point, Comprehensive, Value adding-Wishing this channel should reach a million subscribers in next 2 months. Many thanks Mr Shankar Nath & to the entire team for such an insightful video on SLBM.❤
Thank you so much 😀
For the first time hearing such a wonderful concept. I have been in share market since Corona but did not such a wonderful concept.will explore this one.
Glad it was helpful!
Will have to explore further and understand this. Thanks for detailed video .
My pleasure. Glad it was helpful
Very informative content. And it's nice of you to introduce people who are working behind the scenes.
Glad you liked it! Kartar, Kunal & Akhil were surprised as they didn't know anything about me mentioning them (Rohit knew as he's the one who edited this video)
Very informative video. Covered all points.
Thanks for making it so detailed.
Glad it was helpful! 🙌
I never miss any video of your Mr.Shankar. And, you never disappoint. Thanks a bunch!
So nice of you. I'm very happy to be playing a small part in your financial journey!
Very good, informative article SHANKAR and Team. I have to explore more and check with my Broker on how to take this ahead. Thank you.
My pleasure. Glad it was helpful!
knowledgable content delivered by amazing team, kudos to you guys
Thanks a ton
A long time ago, I searched about SLBM...But everyone was giving half information which is totally confused me..😢..But Now this is 100% Clear for me..😊.. Thanks a Lot ❤
It's my pleasure
Super rich content, sir. Thank you for this session. I had a request sir- please bring in analysis of energy sector and steel plants in India.
Thank you for the suggestion
Very informative. Learned another new one in stock market❤slbm❤
Glad it was helpful!
I wish this process of SLB becomes more streamlined so that retail investors can increase participation ... in the US its much more easier for a retail individual to lend their shares and the market is also more liquid for SLB...
Hi Shankar, loved the coverage of new concept in your video.
Though i am still confused over what happens if the borrower is unable to pay back in the process of failed short selling.
Thank you
Have few questions on this
1. Can we sell stock in between , would there be any additional process involved
2. Can we buy and sell options and perform stock settlement them on expiry
I'm sorry, these are a bit procedural and your brokerage will be in a better position to answer these. May I request you to check with their customer service. I've heard that different brokers might have slightly different rules so please watch out for that too
Zerodha is charging 20% + GST for SLB. Seems way to high. Has anyone come across a more reasonable broker?
I am also wondering do Mutual funds use this to generate extra return? Is that passed onto investor ?
This way index funds should easily beat the index. Am I missing something ?
You meant AMCs doing this? Food for thought
Motilal does it at 10%
Great content!! as always
Appreciate it!
Thanks for making this video. Can you also make one on how to get loans by pledging stocks and Mfs?
Thanks. Yes, made one recently -- ua-cam.com/video/yPXAhAdf1-E/v-deo.html
@shankarnath thanks a lot for sharing the link also. One question for you, if I make a HUF with my family how are the tax implications done? Is it taxed both myself and HUF as well both? When can one reduce taxes with Huf can you make video on Huf how to use this and get the most benefits out of huf as I'm already tax payer under 30% slab
Thank you Shankar for sharing such an informative video. I will now research more on this. Thanks Again
My pleasure. Glad you found it useful 🙌
Dear Shankar sir very useful video ❤
So nice of you. Thank you very much 🙌
Thanks a lot for teaching new things!!!
My pleasure! Glad you liked it
New information ℹ️, thanks a lot sir
Most welcome. Glad you liked it & found it informative
New information to me. Subscribed immediately.
Welcome aboard!
Amazing knowledge gain from your session always❤
Glad to hear that, thanks!
This information is so elaborate. Thank you for sharing
Most welcome. Glad you found it informative
Do mutual funds lend shares to enhance returns?
Awesome presentation
Thanks a lot
Great content, thanks!!!
Glad you liked it!
SLBM is very helpful for short selling and now on long-term investors also benefits
Excellent & very informative video
So nice of you. Thanks Ali
You deserve way more subscribers
Thank you
Excellent explanation
Glad you liked it
THANK YOU - ITS VERY GOOD INFORMATION FOR ME
So nice of you, glad you liked it
Thank you sir Very informative
Most welcome!
Good information video 📸 Thank you
Glad it was helpful! 🙌
does short selling requires shares to be held in demat account ?
If one has to short, why would he prefer this over buying puts or selling calls?
Because options price is much more volatile than stocks... theta decay hurts option buyers alot...
new infomation to me , thank u sir
Most welcome!
Great 👍👍👍
Thank you
Thanks for the information!
Most welcome
I am a big fan of yours and would like to meet you some day. Were you in Bengaluru Sarjapur area few months back. I believe I saw you near that area while in a cab and hence could not stop.
Thank you very much! Yes, I was in B'lore and around Sarjapur in May this year
You r great and glory to Nath Community.I want you to be my guru
Thank you very much 🙌
@@shankarnath Pranam 🙏🙏.
Yeah i read this concept in MBA
SAPM BOOK
You have great quality content. Keep making it for us, Sir!
Thank you Paras
thank you so much, very well explained and everything was there needed to know ❤
You're so welcome! Glad it was helpful
Thanks for the info. Can we lend the pledged shares in this mechanism.
Most welcome. Sorry, I have no idea on pledged share; you'll have to check with your broker. I did read in a Zerodha page that pledged shares cannot be lent under SLBM. Link: support.zerodha.com/category/trading-and-markets/trading-faqs/securities-lending-and-borrowing/articles/lending-pledged-shares-slb#:~:text=No%2C%20pledged%20shares%20cannot%20be,credited%20to%20the%20borrower's%20account.
Bata India was a very convenient example
I knew something like this would be there but always hesitate to ask.I am using this feature on crypto though from past 4 yrs especially on kucoin exchange anyways nice content thnks for info
Thanks for details
Always welcome
Very good information
Thanks!
Very informative insight... thank you...i am active in stock market since 18 months... recently i get to know something about black market (DABBA MARKET) in gujrat...can you make a video on that just for educational purpose ?
Thanks for the suggestion
Very nice informative video, Speaker is awesome😊
Thanks a ton
Sir groww mai feature hai ki nhi 🙏 please bataiye
Can you share practical part । Actual how to done it
Hi. Your broker can help you on the same, request you to connect with your relationship manager
Sir, also discuss risk associated with SLBM
Hi, this was discussed in the video. The major risk for a lender is the close out risk
Something like this concept "Vauld" has done we buy Crypto and giving interest in happy scenario everything will be fine if it did not worked bankrupted. In the above video if borrower got loss in shortsell then what? If loss is more which include 1%? Can you please explain same scenario in 25 Lakhs or Crores of rupees instead of thousands Thank you
Nice stuff
Thanks
What about the long term / short term holding period and tax applicability for the lender as everytime shares are credited to demat, holding period starts from that date. One may lose long term benefits despite holding the the stock for years if he/she ends up selling it soon after leading it and getting it back?
This was covered in the section on corporate actions and taxation. Pls watch from 12:58 onwards
@@shankarnath I saw that. I will watch once again to see if I missed the point.
What I am saying is: When I lend my shares it goes out of my demat and comes back later when the contract ends. Suppose, I bought 100 shares of Icici bank on 1st April 2022. I lend these shares from 1st Jan 2023 to 31st March 2023. Get them back in my demat on 1st April 2023 and decide to sell them at profit. Ltcg should apply in this case. But, brokers platform would calculate the taxation based on demat credit / debit date.
@@shankarnath btw, your research and depth of coverage is really impressive.
@@sauravkataruka1 When shares are lent out, you are still the owner of the shares ("lent" is not sale). So technically, you bought on 01.04.2022 and sold say, on 01.08.2023 .. then its 16 months which means LTCG applies.
Sir Please Reply me...
Kya HDFC SKY use karke SLB service avail karna possible hai??..
Please Reply 🙏
Awesome ❤
Thanks 🤗
Ya but motilal oswal does not allow slbm if portfolio is less than 1.5 crore and I was shocked after hearing this
Thx for sharing, I didn't know this either. I guess since this is not mainstream no one has automated it with tech. That's probably why they have large tickets. But 1.5 cr is definitely high
Thanks for sharing information about Motilal Oswal.
Very helpful
Glad to hear that
Thanks to your team for putting in such thorough research and helping me
Most welcome. Our pleasure!
Very good information and presentation sir. I want know that if the borrower of the shares from lender lose his money while short selling bor anything he made, then how he can pay the respective percentage of amount which he adhered.
Thank you! I'm sorry, I dont know about that. Maybe your brokerage RM can clarify this part
Thanks Shankar bhai for the video. Can you please make a video on ETF investment and it trading strategies
Glad you liked it and thanks for the suggestion
great video
Thank you
Do SBI securities provide as SLBM ?
Slbm under for stock give to lending but here limit price one lakh. this one lakh which type show here mean (invest amount+profit) ya only invest amount need here for lending process.
Sir. Which all platforms allow slbm, seems like it doesn't exist for Upstox.
I'm not sure, sorry! Maybe a search on Google might help
Unfortunately ICICI Direct did not give these options to his clients.
@shankarnath does this SLBM mechanism work along with Smallcase investing through Zerodha?
Sorry, I'm not aware. You'll have to check with the smallcase/zerodha customer service team on the same.
This was a pleasent surprise!.
Please how to use SLBM on my stocks on GROWW
Thanks. Sorry, I'm not aware of Groww's process, you'll have to connect with the team there.
Is this only available in India？
very useful
Glad to hear that
Sir there is not any broker which provide this . They only do advertisement of slbm but in reality if u go to brokers they will not listen to u
On thinking about this a little more, I think I can understand that being offline, there just seems to be too much friction in the setup to justify what are essentially very small returns like 1%.
Are there any plans on bringing the mechanism online? If there is, there might be some interest in pursuing the same.
Hello, you'll have to check the digitization bit with your stockbroker
Does it have any tax implications in context of LTCG?
This was covered in the video. There is no capital gains tax, instead the gains are treated as income from other sources
@@shankarnath I meant is the period of renting out of the share considered in continuous holding of the share for the lender to qualify for LT capital gain.
Hi..Thanks for informative video. However, this thing might not be very lucrative because of the charges involved. 20% in case of zerodha is very high. Approx one month lending fee will go to zerodha only and since one /two month options are most liquid, there is hardly anything for the lender. Of course, this changes when the lender has large number of shares.
I look at it slightly different. So there are 2 scenarios in front of me right now --
a) Scenario 1 - I have say 1 crore of stocks that I want to keep for long-term and I don't put in an SLBM setup. Means I'll make 0 rupees (ofcourse I'll make dividend & capital appreciation)
b) Scenario 2 - I put it on SLBM of say, 2%. I pay 20% of that as commission - which leaves me with 1.6%. So that's 1.6% of 1 crores i.e. 1.6 lakh rupees. Plus dividend & capital appreciation
Even if the scenario 2 numbers are lower like only 1.5% borrowing cost & 30% commission etc., even then the number will be more than zero. When I first looked at it -- it seemed like free money.
Is there some other scenario you meant which might be more lucrative? I'm keen to know.
How do borrowers short sell??
Any one can please clear this? Thanks
I have subscribed 🎉
Welcome aboard
How to do it on groww or upstox
Kindly check with the team there. Generally they'll have some literature on this on their website; kindly have a look
Groww doesn't offer the facility. Not sure about upstox
@@bideshroy486 Agree . Groww does not provide SLB facility. Is it a good option to move to another discount broker who offers SLB ?What's your opinion ?
If the shares under slbm transferred from my demat account, the holding period is broken! Am I right?
Is the SLBM market big enough for the rental yields to be factored into the prices?
I'm not sure but this news item really caught my interest wherein on a single day, investors borrowed 95,99,987 shares of YES Bank worth Rs. 5.9 crore for an interest rate of around Rs 7 per share. So there is tactical opportunism here but in my view, the people using this route (as a part of turnover) is little. But come to think of it, therein lies the opportunity and if everyone starts doing this, the extra income will diminish
I might have missed the main point here, can someone explain to me, why would someone borrow the shares and not buy them? Is it only to avoid the charges?
Hello, the answer to your question has been covered in the video.
Is slbm available for index funds?
I don't think so
I am having upstrox they don't have this facility so how i am supposed to do this ??
You can explore a different platform that offers SLBM. I had taken the example of Kotak Securities in the video, so they have it
@@shankarnath ok thank you so can I trasfer my shares to kotak ??
You'll have to check this with the team at Kotak Securities.
As LUCID as it gets. Hats off to you Sir!🎉
Thank you so much, Mahendra ji
Thank you very much 🙏
You're most welcome