SLBM lending fees are driven by borrowing demand. The stocks most in demand for borrowing are the ones that will generate the highest lending fees for you as a lender. Understanding what creates that demand, and knowing where to find the live data, is more valuable than any static list of stock names.
This is because demand changes. A stock that commanded a 12 percent annualised lending fee in March may drop to 1 percent in April because short sellers have covered their positions. Any list of ‘high demand SLBM stocks’ published in a blog post is stale within days. The useful skill is knowing how to check it yourself, in real time.
SLBM fees are set by live auction on NSE. The authoritative source is the NSE SLB Market Data page at nseindia.com. Third-party platforms aggregate and display this data with additional analytics. No blog post can substitute for checking the live order book before you place a lending order.
Key Takeaways
- Stocks most in demand for SLBM borrowing are typically those with high short-selling interest, upcoming F&O expiry settlement demand, or specific corporate event uncertainty.
- The NSE SLBM eligible securities list is updated on the 20th of each month and covers over 300 stocks as of mid-2026. Eligible stocks are primarily F&O-segment and Nifty 200 stocks.
- You can check live SLBM demand, quantities available, and lending fee rates directly on the NSE SLB Market Data page at nseindia.com.
- High SLBM demand on a stock is often a signal of elevated short interest, which reflects bearish market sentiment on that stock. This does not change your ownership or your long-term investment case.
- The most consistent SLBM income comes from consistently lending eligible holdings month after month, not from timing peak-demand moments on specific stocks.
What Creates High Borrowing Demand for a Specific Stock?
Short-selling activity
The primary driver of SLBM borrowing demand is short selling. A trader who expects a specific stock to fall in price needs to borrow shares before selling them short. If many traders share the same bearish view on a stock at the same time and the pool of lendable shares in that stock is limited, borrowing demand rises and the lending fee spikes.
Stocks most commonly targeted for short selling include those with high valuations relative to earnings that the market is questioning, stocks with regulatory or governance concerns, stocks that have rallied sharply and are expected to correct, and stocks that are heavily owned by retail investors (who tend to be long-only and do not participate in SLBM lending, restricting supply).
F&O expiry settlement demand
In the week leading up to monthly F&O settlement (the last Thursday of each month), SLBM borrowing demand on specific stocks often spikes temporarily. Traders with open short futures positions or short call options positions sometimes borrow the physical shares through SLBM for delivery or settlement purposes. This demand spike is temporary and typically reverses after the expiry date.
Index changes
When a stock is announced as being removed from a major index (Nifty 50, Nifty 100, Sensex), index funds and ETFs that track that index must sell the stock. Anticipatory short sellers borrow shares through SLBM ahead of the rebalancing date to position for the expected price decline. This creates elevated SLBM demand for the stock for the period between the announcement and the effective rebalancing date.
Results season uncertainty
During quarterly earnings season, stocks with uncertain or potentially negative earnings surprises tend to attract more short interest. Traders who want to bet on a company missing estimates may borrow shares through SLBM before the results announcement. Stocks with high analyst estimate dispersion (where analysts disagree significantly on the expected outcome) tend to have more of this demand.
How to Find Which Stocks Currently Have High SLBM Demand
Here is exactly where to look:
- Go to nseindia.com.
- Navigate to Market Data in the top menu.
- Look for Securities Lending and Borrowing or SLB in the market data section.
- The SLBM market data page shows the live order book: which stocks have active borrow orders, the quantity being requested, the fee being offered by borrowers, and the tenure.
- Stocks where borrowers are actively seeking large quantities at high fees have high demand at that moment. Stocks with no borrower orders have zero lending income potential that day.
- Check this page in the first week of the month, when the new monthly SLBM contracts open. Fees are most visible then because borrowers and lenders are placing their initial orders for the new period.
Third-party platforms like StockeZee aggregate NSE SLBM data with additional analytics including historical yield trends and volume patterns. These can help you identify which stocks have consistently attracted borrowing demand over multiple months, which is a more reliable income signal than a single month’s spike.
Understanding the Demand Signals
| Signal | What It Indicates | Implication for Lender |
| Very high fee (above 8 percent annualised) | Concentrated short interest. Limited lendable supply. Borrowers competing aggressively. | High income per share. But the stock is attracting heavy bearish conviction. Your long-term holding thesis should be confirmed before lending. |
| Moderate fee (1 to 4 percent annualised) | Regular demand from hedgers and routine short sellers. Healthy and consistent. | Reliable income stream. The fee is sustainable month to month. Most Nifty 50 blue chips fall here. |
| Low or zero fee (under 0.5 percent) | Abundant supply relative to demand. Most participants can source shares without paying much. | Not worth the administrative effort at small holding sizes. Consider whether other eligible holdings offer better rates. |
| Fee spike around F&O expiry | Temporary settlement-related demand. | Can be captured if you are positioned before expiry week. Fee may not repeat in the next month at the same level. |
The Key Practical Insight
Chasing peak-demand stocks in SLBM is a lower-yield strategy than most investors expect. By the time a high fee is publicly visible on the NSE platform, supply from other lenders is already flowing in to capture it, which compresses the fee quickly.
The more consistent and lower-effort approach is to list all your eligible Nifty 50 and Nifty 200 holdings for lending each month at a reasonable minimum fee, and accept whatever the market pays. Over 12 months, this generates a blended lending income of 0.5 to 2 percent annualised on the eligible portion of your portfolio without any active strategy to time demand spikes.
Fortune Wealth helps long-term equity investors in Mumbai understand income strategies on existing stock holdings. For guidance on setting up SLBM as part of your equity portfolio strategy, connect with our team.
Frequently Asked Questions
Which stocks have the highest SLBM lending fees in India?
SLBM lending fees change daily and are set by live auction on the NSE SLB platform. The stocks with the highest fees at any given time are those with the most concentrated short-selling demand relative to available lending supply. Providing a specific list would be stale within days. To find current high-fee stocks, check the NSE SLB Market Data page at nseindia.com directly, or use third-party platforms like StockeZee that aggregate live SLBM data with historical analytics.
Do Nifty 50 stocks always have SLBM demand?
Not always. Nifty 50 stocks have the deepest pool of institutional ownership and are almost always on the NSE eligible securities list. However, demand varies by stock and by month. A Nifty 50 stock with little short interest in a given month may have zero or near-zero SLBM demand, meaning your lending order does not find a match and you earn nothing. Demand is higher during earnings season, around corporate events, near F&O expiry, and when broader market bearishness picks up.
Why do SLBM fees spike near F&O expiry?
Near monthly F&O expiry (the last Thursday of each month), traders with open short futures or options positions sometimes need to borrow physical shares for settlement. This settlement-related demand is temporary and concentrated in the last week before expiry. The fee spike it creates may not repeat in the following month at the same level. Lenders who can time their contracts to capture this expiry-week demand can earn above-average fees, but this requires active monitoring and willingness to place short-tenure contracts.
Is high SLBM demand a warning sign about a stock?
Very high SLBM demand on a stock often reflects concentrated bearish sentiment from short sellers who expect the price to fall. As a long-term holder of the same stock, you may have a different view. High SLBM demand does not change your ownership of the stock or your long-term investment thesis. It simply means short sellers are willing to pay you more to borrow your shares. Whether the short sellers are right or wrong about the stock’s future price is a separate question from whether to lend at the offered fee.
How often should I check SLBM demand for my stocks?
For most buy-and-hold investors, checking once a month is enough. The NSE eligible securities list is updated on the 20th of each month. Check it after each update to see which of your holdings qualify. Then check the live SLBM order book in the first few days of the new month to see the fees available on your eligible holdings and decide whether to place lending orders for that month. More frequent monitoring is useful if you want to capture F&O expiry fee spikes, but adds administrative overhead for typically marginal gains.
Does SLBM demand differ between NSE and BSE?
SLBM operates on both NSE (cleared by NSE Clearing Ltd) and BSE (cleared by Indian Clearing Corporation Ltd). Liquidity and demand are generally higher on NSE because NSE has deeper equity market participation, a larger F&O segment, and a more established SLBM infrastructure. Most retail investors and institutional participants conduct SLBM activity primarily on NSE. BSE SLBM is available but has lower average volumes and may not offer the same fee levels for the same stock on the same day.
| Topic | URL and Anchor Text |
| SLBM Full Explainer | how the securities lending and borrowing mechanism works |
| How to Earn Passive Income Using SLBM | step-by-step guide to SLBM passive income |
| Stocks and Equity | explore equity investment in Mumbai |
