# RCM on Lending of Securities – Entry 16
## The Entry
| Supplier | Service | Recipient |
|---|---|---|
| Lender — a person who deposits securities registered in his name or in the name of any other person duly authorised on his behalf with an approved intermediary for the purpose of lending under SEBI's Scheme | Service of lending of securities under the Securities Lending Scheme, 1997 of SEBI | Borrower — a person who borrows the securities under the Scheme through an approved intermediary of SEBI |
## Background
Under SEBI's Securities Lending and Borrowing (SLB) framework, lenders (often long-term holders) lend securities to borrowers (often short-sellers) through an approved intermediary (clearing corporation). The lending fee is treated as a taxable service.
## Why RCM?
- Borrowers are typically registered market participants making it administratively simpler to collect GST from them.
- The lender base is wide and fragmented.
## Parliament / Legislatures / Courts / Tribunals — Important Note
The RCM notification's provisions referring to CG/SG also apply to Parliament and State Legislatures, Courts and Tribunals wherever the supplier is one of these bodies.