HSBC has launched clearing services for institutional investors who participate in Securities Lending and Borrowing (SLB) transactions which will be permitted in India starting on 21 April 2008.
Local and cross-border investors can now clear their SLB transactions, in addition to their equity, debt and derivative trades, through HSBC.
HSBC Securities Services in India will be able to clear positions on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE) on behalf of investors when the SLB market goes live on 21 April 2008.
The Securities and Exchange Board of India (SEBI), the Indian securities market regulator, has permitted short selling of securities by institutional investors and the simultaneous introduction of SLB in India with effect from 21 April 2008. This is a significant development in the Indian securities market which provides an opportunity for investors to earn incremental returns on their securities and to develop multiple trading strategies for their investments in India.
“This new SLB clearing service further strengthens HSBC’s position as an integrated securities services provider supporting investors who participate in the rapidly evolving Indian capital market. With this service, clients will benefit from a single window solution, settlement efficiency, timely and comprehensive reporting capabilities and enhanced flexibility in managing their securities and funds to meet their investment objectives,” says Vikramaaditya, head, HSBC Securities Services India.