Lombard loans on the BSE.
Private credit against BSE (Bombay Stock Exchange)-listed shares — pledged, not sold.
A Lombard loan against BSE-listed shares is credit secured by a pledge of equity listed on the BSE (Bombay Stock Exchange). The holder pledges the shares, draws cash against a fraction of their market value, retains ownership and dividends subject to structuring, and recovers the position on repayment.
- Facilities are arranged against equity listed on the BSE (Bombay Stock Exchange) (BSE), Mumbai.
- The pledge preserves ownership, dividends, and the upside for the holder.
- Loan-to-value is set per line; funded in INR or cross-currency.
- Structured under SEBI, with disclosure from 5%.
The venue
Asia's oldest stock exchange. Most large Indian issuers are dual-listed on BSE and NSE; the Indian takeover code carries specific open-offer and creep mechanics that materially affect the structuring of large institutional positions.
Regulator and disclosure
The BSE (Bombay Stock Exchange) operates under Securities and Exchange Board of India (SEBI). SEBI (SAST) Regulations: disclosure of acquisition required at 5%; continuing disclosure at every 2% change above. A pledge over a substantial line is arranged with that reporting regime in view, so that the facility is both discreet and compliant, and so that positions near a control or takeover threshold are not disturbed.
Structuring a facility here
Lombard facilities against BSE-listed shares are typically arranged for a tenor of twelve to thirty-six months, funded in INR or another currency on a cross-currency basis, with the collateral held by a qualified custodian under bankruptcy-remote arrangements. Non-recourse, limited-recourse, and full-recourse structures are available; the choice interacts with the loan-to-value and the spread.
| Exchange | BSE (Bombay Stock Exchange) (BSE) |
|---|---|
| City · Country | Mumbai · India |
| Regulator | Securities and Exchange Board of India (SEBI) |
| Disclosure | From 5% |
| Principal indices | S&P BSE Sensex, S&P BSE 100, S&P BSE 500 |
| Segments | Equity (Main Board); BSE SME; BSE Startups |
| Currency · Tenor | INR · 12–36 months |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Financing a position listed on the BSE?
Request terms →See also the country overview: Lombard loans in India.
Other exchanges in the region.
On this market, specifically.
Liquidity and the index
The BSE, Asia’s oldest exchange, is referenced through the S&P BSE Sensex and the broader BSE 100 and BSE 500. Most large Indian issuers are dual-listed on the BSE and the NSE, so a Sensex constituent almost always trades on both venues; in practice the NSE carries the greater share of cash-equity turnover, and the BSE quote is read alongside it when a line is valued. For a Lombard loan the consequence is favourable: an index-weight, dual-listed line enjoys two pools of liquidity, which supports a fuller advance rate, while narrowly-held names on the SME and Startups boards are reviewed far more conservatively.
Structuring notes
Structuring against BSE-listed shares is shaped by the SEBI Takeover Regulations and by India’s promoter-pledge disclosure rules: where the collateral is a promoter holding, the creation and release of the pledge are themselves reportable events, so the facility is documented to accommodate that transparency from the outset. Because most Sensex names are also NSE-listed, the security can reference the more liquid venue at valuation and, if ever required, at enforcement. The pledged shares are held with a qualified custodian, and the structure is arranged so that neither the pledge nor a margin call is read as an acquisition capable of triggering an open offer.