Can I participate in securities lending and borrowing mechanism using my shares in the demat account. How will it work?

SEBI has introduced Securities Lending and Borrowing scheme. As per this scheme, those persons having securities can lend their securities for consideration and those requiring securities (for meeting market obligations, as collateral etc.) can borrow the same. Under the scheme, the securities are lent through intermediaries who are approved by SEBI.

The approved intermediary would borrow the securities for further lending to borrowers. Lenders of the securities and borrowers of the securities enter into separate agreements with the approved intermediary for lending and borrowing the securities. Lending and borrowing are effected through the depository system.