Lombard loans in India.
Private credit against India-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against India-listed shares is credit secured by a pledge of equity listed on the BSE, NSE. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the BSE, NSE (BSE / NSE).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in INR or cross-currency.
- Structured under the SEBI regime, with disclosure from 5%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal India venues: BSE (Bombay Stock Exchange) (BSE); National Stock Exchange of India (NSE). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in India are regulated by Securities and Exchange Board of India (SEBI). Substantial-shareholding disclosure is triggered from 5%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in INR or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | BSE (Bombay Stock Exchange) (BSE); National Stock Exchange of India (NSE) |
|---|---|
| Regulator | Securities and Exchange Board of India (SEBI) |
| Currency | INR (cross-currency available) |
| Disclosure threshold | From 5% substantial-holding disclosure |
| Principal indices | S&P BSE Sensex, S&P BSE 100, S&P BSE 500; Nifty 50, Nifty Next 50, Nifty 500 |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a India-listed position?
Request terms →The listing venues in India.
BSE
BSE (Bombay Stock Exchange) — Mumbai. Regulator: SEBI.
BSE Lombard loans →NSE
National Stock Exchange of India — Mumbai. Regulator: SEBI.
NSE Lombard loans →Lombard loans across Asia-Pacific.
On this market, specifically.
Disclosure and regulation
Indian-listed shares fall under the Securities and Exchange Board of India, whose Takeover Regulations — SEBI (SAST) 2011 — require disclosure of an acquisition at 5% and continuing disclosure on each 2% change thereafter, alongside the SEBI (LODR) framework. The code also carries open-offer and creep mechanics that can oblige a holder crossing certain levels to extend an offer to public shareholders. A Lombard loan is a pledge, not an acquisition, but pledges of promoter and substantial holdings are themselves reportable in India, so the facility is arranged and disclosed with the SAST regime in view and any enforcement mapped against these thresholds in advance.
An illustrative example
Consider a private holding of INR 200 crore in a large-capitalisation line held across the Sensex and Nifty constituents. At an illustrative loan-to-value of 50% — within the disclosed 20–65% range — the facility releases roughly INR 100 crore while the shares remain pledged and owned. Funding may be drawn in INR or, subject to the applicable exchange-control position, on a cross-currency basis. The holder keeps dividends and the upside and recovers the line on repayment; where the holding is a promoter stake, the pledge is disclosed as the Indian rules require.
Illustrative only — not an offer, a quotation, or a commitment to lend.