Indian bourse to hold special live trading session for securities lending and borrowing on 6th February

The National Stock Exchange of India (NSE) is to hold a special live trading session on 6^th February 2010 for its securities lending and borrowing scheme, the bourse has announced.

The special session will take place from 11:00 until 12:30 and will require a change of clearing and settlement schedules. Transactions executed on the 6^th will be settled in two legs, on 8^th February for the first leg and 26^th March for the reverse leg.

There have been a number of developments in the Indian securities lending industry of late, including changes in rules and guidelines from the Securities and Exchange Board of India (SEBI).

Earlier this month, the regulator introduced provisions allowing lenders and borrowers to recall or repay shares early while the allowable length of a securities lending contract was expanded to one year. In December, guidelines on valuing collateral were amended.