​​​​​​​​​​​​​​​Securities Lending​​​​

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Securities lending is the market practice of temporarily transferring securities, for a fee, from their holder (the lender) to another party (the borrower), with the borrower agreeing to return the securities to the lender either on demand or at the end of the agreed loan term. This practice usually requires the borrower to collateralize the transaction with cash or other securities of a value equal to or greater than that of the lent securities, in order to protect the lender against counterpart credit risk.​ 

Securities lending plays an important role in capital markets by providing liquidity, which in turn reduces the cost of trading and promotes price discovery.​ Global Master Securities Lending Agreement (GMSLA) and its Nigerian Addendum is the standard contract document that binds lender and borrower in a Securities Lending arrangement.  ​​​

See chapter nine of the NSE RULEB​OOK  for Securities Lending guidelines.​