If you invest in the stock market and hold shares in your Demat account for the long term, you can now earn a fixed, additional income from these holdings. 'NSE Clearing Limited,' a subsidiary of the National Stock Exchange (NSE), is launching a new system on August 17 that allows you to profit by 'renting out' your shares for just three days. Under the Securities Lending and Borrowing (SLB) scheme, this new rule eliminates the need to sell your valuable shares; instead, you can boost your income by lending them for a short period in exchange for a lending fee.

**Transaction completed in just three days**
While the Securities Lending and Borrowing (SLB) scheme already exists in the stock market, it is now being made faster and more convenient for investors. According to a new circular issued by NSE Clearing, this system will be known as the 'R3 Series' and will be available for trading daily. The standout feature of this new structure is its very short cycle. Simply put, the day you execute the deal to rent out your shares (referred to as 'T Day' in market parlance), the first leg of the transaction settles the very next day, or 'T+1'. Subsequently, the second phase—the return of your shares—concludes on the third day, or 'T+3'. You simply need to note that Saturdays, Sundays, and stock market holidays are excluded from this three-day count.

**This excellent opportunity applies only to specific shares**
Investors might wonder if every share in their portfolio can be rented out in this manner. Under the new rules, that is not the case. This special contract applies only to select shares that are eligible for trading in the equity derivatives segment. In other words, only stocks that are part of the Futures and Options (F&O) segment can be lent under this new three-day system.

**The new rule differs significantly from the old system**
Existing lending contracts come with various conditions. For instance, under the old system, if a company’s Annual General Meeting (AGM) or Extraordinary General Meeting (EGM) was scheduled, the contract would be terminated prematurely. However, the new 'R3 series' is completely free from this hassle; your three-day contract will not be cancelled midway due to any such meeting. That said, given the short duration, investors will not have access to features like repayment, recall, or rollover options available in longer-term contracts. All other operational aspects—such as risk management, clearing, and handling of corporate actions—will continue to function as they do currently.

**Benefits for both investors and traders**
The Securities Lending and Borrowing Mechanism (SLBM) is a secure system that allows you to generate extra income from your existing shareholdings without any active effort. Investors who do not intend to sell their shares in the near term can easily earn lending fees through this system. Conversely, traders who need to borrow shares for short periods—specifically for short-selling—will also benefit immensely. Previously, they were compelled to enter into long-term contracts, but now they can borrow shares for just three days based on their specific requirements. Throughout this process, the exchange and the clearing corporation act as guarantors, ensuring accurate trade matching and the complete safety of your shares.

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