SEBI, vide circular dated January 5, 2024, issued a broad framework for short selling in the Indian securities market. Some of the key provisions are as follows:
- naked short selling is not permitted in the Indian securities market and accordingly, all investors have to honor their obligation of delivering the securities at the time of settlement;
- a scheme for Securities Lending and Borrowing will be put in place to provide the necessary impetus to short sell;
- securities traded in the Futures and Options segment will be eligible for short selling; and
- institutional investors must disclose upfront at the time of placement of order whether the transaction is a short sale.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
