Fintech platform Dhan has launched A stock lending & borrowing mechanism (SLBM) feature, a move that will allow long-term investors to earn passive income from their idle stock and ETF holdings.
The new feature gives investors a choice to lend their unutilised shares to borrowers for a fixed rental fee, without needing to sell their investments.
'This mechanism," Pravin Jadhav, CEO, Dhan, said, ' is an exchange-driven process and marks the first time a discount broker has digitally introduced such an option in India.'
The low-cost brokerage claims lenders can earn between 6 per and 24 per cent per annum on highly liquid stocks, with transactions guaranteed by the clearing corporation.
Jadhav added that the system is designed to be seamless, transparent, and easy to use, ensuring investors retain full ownership of their stocks and receive daily rental payouts. -- Business Standard