Fintech platform Dhan has launched a stock lending and borrowing mechanism (SLBM) feature, a move that will allow long-term investors to earn passive income from their idle stock and exchange-traded fund (ETF) holdings, writes Business Standard.
The low-cost brokerage claims lenders can earn between 6% and 24% per annum on highly liquid stocks, with all transactions guaranteed by the clearing corporation. Pravin Jadhav, chief executive officer of Dhan, said to Business Standard: “This mechanism is an exchange-driven process and marks the first time a discount broker has digitally introduced such an option in India.”