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.