Short-selling to begin from April 21

The Securities and Exchange Board of India (Sebi) on Wednesday said short-selling and securities lending and borrowing will be operationalised from April 21.

The circular asked stock exchanges and depositories to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the decision, bring the provisions of the circular to the notice of the member brokers/clearing members, depository participants and communicate to the Sebi the status of the implementation of the provisions of the circular in the monthly development report submitted to the market regulator.

Sebi had come out with a circular on December 20, 2007, specifying the broad framework....................

.
.
.
.
.
.
.
.
.
.

The long wait is over for stock market participants. Regulator Sebi has finally announced that short-selling and stock lending and borrowing will be operational from April 21.

Short-selling will only be allowed in futures and option stocks, for a period of 7 days, after which its positions will have to be squared off.

Sectoral FDI caps will be available for short-selling. Many of the sectors, which have a low FDI cap and where FII limits have been crossed, will not be eligible despite being in the F&O segment.

Institutions and investors borrowing stocks will have to pay a margin fee to the lender.