Stock borrowing and lending (SBL) is a system in which traders borrow shares that they do not already own, or lend the stocks that they own but do not intend to sell immediately.
Just like in a loan, SBL transaction happens at a rate of interest and tenure that is fixed by the two parties entering the transaction.
Under this facility, the lender lends the securities to the borrower in consideration of the collateral from the borrower. The borrower is required to return the securities borrowed to the lender upon the lender's demand or within a specified period.