- Continues to expand its product suite for long-term investors and ‘Super Traders’ backed by exchanges and Clearing Corporation
- Enabling investors to earn passive income from their existing stock & ETF holdings
NE BUSINESS BUREAU
MUMBAI, NOV 5
Dhan (www.dhan.co) – one of India’s fastest-growing stock trading & investing platform, announced the launch of Stock Lending & Borrowing Mechanism (SLBM) feature on Wednesday. The new offering allows investors to turn their idle stock and ETF holdings into passive income by lending them for a fixed rental fee without selling their investments. This mechanism is an exchange-driven process and marks the first time a discount broker has digitally introduced such an option in India.
For lenders (investors), it’s an opportunity to earn passive rental income on idle holdings without changing ownership. Rental yields can vary based on demand and stock liquidity.
“Our mission at Dhan has been to always empower investors to do more with their investment portfolio. With Renting of Stocks via SLBM, we are unlocking a new passive income stream for long-term investors while keeping safety and transparency at the core.” said Pravin Jadhav, Founder & CEO, Dhan.
Recognizing the growing desire among investors for smarter yield-generating avenues, Dhan has developed this fully online stock rental experience, designed to be seamless, transparent, and easy to use. Built for India’s long-term investors and ‘Super Traders’, SLBM, now enables users to generate dual income from both capital appreciation and rental yield in a regulated exchange-settled framework guaranteed by the clearing corporation.
Further, Pravin Jadhav added that, “Indian investors and traders today are looking for yield-generating opportunities beyond traditional avenues. Rental of Stocks via SLBM delivers to that end while being simple, regulated, and rewarding.”
Rental of stocks will be made available for investors of Dhan via its App and Web. Market participants and investors wanting to avail the facility of Rental of Stocks can transfer their portfolio holdings to their demat account with Dhan.
Launched in November 2021, Dhan has consistently delivered innovation-led experiences across Stocks, ETFs, Mutual Funds, MTF (Pay Later), and its in-house research platform, ScanX. Over time, the company has introduced industry-first features like Instant Pledge & Unpledge, Super Orders, Instant Withdrawals, and Mutual Funds in demat format, thereby earning the trust of nearly 1 million active users across India.
