SEBI modifies the rule of dividend transfer under SLB

SEBI vide circular CIR/MRD/DP/ 33 /2010 dated October 07, 2010 has modified the Securities Lending and Borrowing ("SLB") framework. As per the modified framework, the lenders of shares under SLB scheme will now get dividend on the record date. Currently the borrower who is in the possession of share gets the dividend on the record date and he transfers the dividend to the lender at the time of repayment of the shares borrowed.

A copy of the circular is available here.