Dhan Revolutionizes Passive Income Opportunities for Indian Investors
In a significant move for India's investment landscape, Dhan, one of the country's fastest-growing stock trading platforms, has launched a groundbreaking Stock Lending & Borrowing Mechanism (SLBM). This innovative feature, announced on November 5, 2025, in Mumbai, enables investors to generate passive income from their existing stock and ETF holdings without liquidating their positions.
How Stock Lending Creates New Revenue Streams
The newly introduced mechanism allows investors to lend their idle stock and ETF holdings to other market participants in exchange for a fixed rental fee. This exchange-driven process represents the first time a discount broker has digitally introduced such an option in India, marking a milestone in the evolution of the country's financial technology sector.
For lenders, this presents an opportunity to earn additional rental income on investments that would otherwise remain dormant in their portfolios. The rental yields vary based on market demand and the liquidity of specific stocks, creating dynamic earning potential for participants.
Leadership Vision for Investor Empowerment
Pravin Jadhav, Founder & CEO of Dhan, emphasized the company's mission to empower investors to maximize their portfolio potential. "Our mission at Dhan has been to always empower investors to do more with their investment portfolio. With Renting of Stocks via SLBM, we are unlocking a new passive income stream for long-term investors while keeping safety and transparency at the core," Jadhav stated.
The platform has developed a fully online stock rental experience that addresses the growing demand among Indian investors for smarter yield-generating avenues. The system is designed to be seamless, transparent, and user-friendly, catering specifically to long-term investors and active 'Super Traders'.
Dual Income Strategy in Regulated Framework
The SLBM feature enables users to generate dual income from both capital appreciation and rental yield within a regulated exchange-settled framework guaranteed by the clearing corporation. This provides investors with an additional layer of security and trust in the process.
Jadhav further elaborated on the market need driving this innovation: "Indian investors and traders today are looking for yield-generating opportunities beyond traditional avenues. Rental of Stocks via SLBM delivers to that end while being simple, regulated, and rewarding."
The stock rental facility will be accessible to Dhan investors through both the mobile application and web platform. Market participants interested in utilizing this service can transfer their portfolio holdings to their demat account with Dhan to begin earning passive income.
Dhan's Track Record of Innovation
Since its launch in November 2021, Dhan has consistently introduced innovation-led experiences across various investment products including Stocks, ETFs, Mutual Funds, MTF (Pay Later), and its in-house research platform, ScanX. The company has pioneered several industry-first features such as Instant Pledge & Unpledge, Super Orders, Instant Withdrawals, and Mutual Funds in demat format.
These innovations have helped Dhan earn the trust of nearly 1 million active users across India, positioning it among the Top 10 stock trading platforms by active clients according to NSE data.
Headquartered in Mumbai and operated under Raise Securities, Dhan is part of Raise Financial Services, which was founded in January 2021 by startup leader and serial entrepreneur Pravin Jadhav, former Founder and CEO of Paytm Money, along with Alok Pandey, Jay Prakash Gupta and Raunak Rathi.
The company is backed by prominent investors including Hornbill Capital, Mirae Asset Venture Investments, MUFG, BEENEXT and 3one4 Capital, along with technology entrepreneurs and leaders from the Indian startup ecosystem.
