NSE Clearing To Launch R3 Series for Shorter-Tenure SLB Contracts From August 17, 2026

NSE Clearing is to introduce shorter-tenure contracts under its Securities Lending and Borrowing (SLB) scheme from August 17, 2026, as per a MoneyControl news report. The new contracts will be issued under the R3 series and will be generated each day. 

For these contracts, the first leg of a transaction will be settled on T+1, as is currently the case. The reverse leg will be settled on T+3, excluding settlement holidays. 

Only Selected Stocks Eligible 

The R3 series will be available only for stocks eligible for trading in the Equity Derivatives Segment. NSE Clearing noted that the additional series would be included in the security file shared by the exchange at the end of August 14, 2026. 

The contracts will also have separate provisions for company meetings. Existing SLB contracts can be foreclosed in certain such cases, but the R3 contracts will not be foreclosed due to an Annual General Meeting (AGM) or Extraordinary General Meeting (EGM). 

Repay, Recall and Rollover Excluded 

NSE Clearing said the repay, recall, and rollover facilities will not be available for R3 contracts. Other provisions covering market timings, clearing and settlement, risk management and corporate action treatment will remain applicable as they are for existing SLB contracts. 

The terms therefore differ from the existing SLB structure, particularly in the treatment of early repayment and recall requests. 

What Is the SLB Mechanism? 

The Securities Lending and Borrowing mechanism allows one participant to lend securities to another for a specified period against a lending fee. The transactions are carried out through an automated screen-based platform. 

Orders are matched on price-time priority, with participants quoting a lending fee per share. The mechanism is used by market participants who need to borrow shares, including for short-selling, while lenders receive a fee for lending their holdings. 

Existing SLB Contracts 

Current SLB contracts can have tenures ranging from three days to 12 months. They are based on fixed monthly tenures and have specified dates for settlement of the reverse leg. 

The existing system allows lenders to make an early recall request. Borrowers can also make early repayment and further relend the securities, subject to the applicable provisions. 

Settlement Under R3 

The R3 series will add a separate shorter-tenure option to the SLB framework. Its first leg will settle on T+1 and the reverse leg on T+3. 

The new contracts will be available from August 17 and will apply only to stocks eligible for the Equity Derivatives Segment. 

Read More: SEBI Proposes Colour-Coded Credit Risk-o-Meter for Debt Securities! 

Conclusion 

NSE Clearing will introduce the R3 series from August 17, with the first leg settling on T+1 and the reverse leg on T+3. The contracts will be available only for stocks eligible in the Equity Derivatives Segment. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.