What is Early Repayment of securities by the borrower?
An Early Repay/ Return refers to when a borrower wants to return borrowed security before the stock return date of the given contract.
A borrower can exit an open SLBS position by repaying the securities to NSE Clearing Corporation Limited. On receipt of the securities, margins blocked in the borrower's account are released immediately.
The borrower can further lend the securities over the remaining period of the tenure. For this, he will be required to place a repay order through their broker and quote the lending fees he wishes to receive for the remaining contract period. If this order gets executed, settlement of the early repay recall takes place on T+1. On successful completion of pay-in, the borrow position is closed.
Repay orders can be placed up to 3 days before the respective reverse leg settlement day. They can also be placed as partial quantity repay orders.