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.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.
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.
