Stock lending and borrowing is a process where investors can lend or borrow securities for a specific time. Zerodha, one of India's leading discount brokers, offers its customers a stock lending and borrowing platform.

Stock Lending: Stock lending involves lending securities that you own to another investor for a fee. The borrower gets access to the securities and can sell them in the market to make a profit. The lender, on the other hand, earns a fee for lending the securities. The fee is typically a percentage of the value of the securities and is paid to the lender at the end of the lending period.

Stock Broking: Stock borrowing is the process of borrowing securities that you do not own to sell in the market. The borrowed securities must be returned to the lender at the end of the borrowing period. The borrower pays a fee for borrowing the securities, which is usually a percentage of the value of the securities.

Zerodha's stock lending and borrowing platform allows investors to earn additional income by lending out their idle stocks to other investors. The platform offers a list of securities that are available for lending, and investors can choose the securities they want to lend. The lending fee is determined by the demand for the stock and can vary depending on market conditions.

Conclusion

Zerodha's stock lending and borrowing platform is a great way for investors to earn additional income by lending out their idle stocks or borrowing securities to short sell in the market.

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