What is Lending and Borrowing of Securities?
If any person required to deliver a security in the market does not readily have that security, he can borrow the same from another person who is willing to lend as per the Securities Lending and Borrowing Scheme. 
Can lending and borrowing be done directly between two persons?
Lending and borrowing has to be done through an ‘Approved Intermediary’ registered with 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 is effected through the depository system. 
Can I lend the securities lying in my account?

Yes. You can lend your securities through Approved Intermediaries registered with SEBI. 
How would I lend my demat securities?

You may enter into an agreement with the approved intermediary to be a lender under this scheme. After that, you may lend securities any time by submitting lending instruction to your DP.
How would I lend my demat securities?

Intermediary may return the securities at any time or at the end of the agreed period of lending. Intermediary has to repay the securities together with any benefits received during the period of the loan.
How would I receive the corporate benefits which would accrue on these securities during the period of lending?
The benefits will be given to the Intermediary/borrower. However, whenever the securities are being returned / recalled. Intermediary/borrower will return the securities together with benefits received.