Shorter-Tenure SLB Contracts: All You Need to Know About NSE and BSE Clearing

Mumbai, Aug 21: NSE Clearing and BSE Clearing have introduced shorter-tenure contracts under the Securities Lending and Borrowing (SLB) scheme from August 17, 2026, giving participants an additional contract structure with a T+3 reverse-leg settlement. The move applies to eligible securities and introduces daily contracts with specific conditions on settlement, corporate actions, and early repayment facilities. 

T+3 Reverse Settlement Creates a Shorter SLB Cycle 

The shorter-tenure contracts use a T+1 first-leg settlement and a T+3 reverse-leg settlement. Under the new structure, the first leg of an SLB transaction will continue to be settled on T+1, while the corresponding reverse leg will be settled on T+3, excluding settlement holidays. 

At NSE Clearing, the contracts are introduced under the “R3” series, while BSE Clearing has specified the “D” series, with the BSE contract example identified as SBIN20AUG26D-MCF. The contracts are generated and made available on a daily basis, creating a separate shorter-tenure option within the existing SLB framework. 

The introduction of the new contracts therefore adds a daily contract format while retaining the existing settlement and clearing framework applicable to SLB transactions. The introduction of the new contracts therefore adds a daily contract format while retaining the existing settlement and clearing framework applicable to SLB transactions. 

August 17 Launch Limits Contracts to Derivatives Stocks 

The shorter-tenure contracts became available from the transaction day of August 17, 2026 and are restricted to securities eligible for trading in the Equity Derivatives Segment. 

The NSE security file shared at the end of day on August 14, 2026 included the additional R3 series, while BSE Clearing’s EOD security file included the D-series MCF suffix. 

The eligibility condition means that the shorter-tenure facility is not being introduced across all securities available through the SLB framework. Instead, the contracts are confined to stocks that meet the specified Equity Derivatives Segment eligibility requirement. 

The exchanges have also retained the existing provisions governing market timings, clearing and settlement procedures, risk management, corporate actions and other applicable operational processes, unless specifically modified for the shorter-tenure contracts. 

No AGM Foreclosure Changes Corporate Action Treatment 

A key feature of the shorter-tenure contracts is that they will not be foreclosed in the event of an Annual General Meeting (AGM) or Extraordinary General Meeting (EGM). 

The provision differs from arrangements that can apply to existing SLB contracts when corporate actions require changes to contract treatment. For the new shorter-tenure structure, the contract will continue without foreclosure in the event of an AGM or EGM. 

BSE Clearing has also specified that the contracts will not have facilities for repay, recall or rollover. The same restrictions apply to the shorter-tenure structure described by NSE Clearing. 

This creates a defined set of conditions for the new contracts, with the shorter settlement schedule accompanied by separate rules governing early repayment, recall and contract continuation. 

Daily Contracts Remove Fixed Monthly Tenure Dependence 

The contracts are generated daily rather than relying solely on the fixed monthly structure used for existing SLB contracts. This provides a distinct contract format within the securities lending and borrowing mechanism. 

Under the SLB scheme, securities lending and borrowing are conducted through an automated, screen-based platform, where orders are matched according to price-time priority. Participants quote a lending fee per share, while the lending and borrowing contracts are processed through the applicable clearing and settlement framework. 

Existing SLB arrangements also provide lenders with a facility to make an early recall request for securities. Borrowers can make an early repayment and further relend securities under the applicable existing provisions. These facilities, however, do not extend to the shorter-tenure contracts introduced under the new series. 

The new contracts will operate within the existing SLB framework, with the specified provisions continuing to apply. 

BSE D Series and NSE R3 Series Set Different Labels 

BSE Clearing and NSE Clearing have adopted separate series identifiers for the shorter-tenure contracts. BSE Clearing has specified the “D” series, while NSE Clearing has referred to its contracts as the “R3” series. 

BSE Clearing’s notice, dated August 15, 2026, stated that the shorter-tenure contracts would be introduced with effect from the transaction day of August 17, 2026. The notice also asked members and participants to make the necessary operational arrangements before implementation. 

The BSE communication followed an earlier notice dated April 19, 2026 concerning the introduction of shorter-tenure contracts under the SLB scheme. The latest notice formally set out the operational features and implementation date for the new contract structure. 

Three-Day Structure Adds Flexibility to SLB Operations 

The shorter-tenure contracts introduce a separate contract structure within the existing securities lending and borrowing framework. The structure combines a T+1 first leg with a T+3 reverse leg, daily contract generation and eligibility limited to Equity Derivatives Segment securities. At the same time, the contracts carry specific restrictions, including no foreclosure for AGM or EGM events and no repay, recall or rollover facilities. 

The arrangement provides a defined shorter-tenure mechanism for securities lending and borrowing, while market timings, clearing, settlement, risk management and other applicable processes continue to follow the provisions governing existing SLB contracts. 

The shorter-tenure SLB contracts introduced from August 17, 2026 use a T+1 first leg and T+3 reverse leg, with daily generation and eligibility restricted to Equity Derivatives Segment stocks. The NSE R3 and BSE D series carry specific rules on corporate actions, while repay, recall and rollover facilities remain unavailable. 

Source 

• https://www.bseindia.com/downloads/UploadDocs/Notices/20260815-1/20260815-1.pdf 

• https://www.archive.nseclearing.in/content/circulars/CMPT75761.pdf