India’s market regulator, the Securities and Exchange Board of India (SEBI), has reiterated its prohibition on naked short selling in the country’s securities market. While investors of all categories can engage in short selling, SEBI emphasized that naked short selling is not permitted, and investors must fulfill their obligation of delivering securities during settlement. Additionally, SEBI stated that institutional investors are not allowed to practice day trading and all transactions for them would be grossed at the custodians’ level. The regulator may review the list of stocks eligible for short selling transactions and requires upfront disclosure from institutional investors regarding short sales.
SEBI Reiterates Ban on Naked Short Selling, Prohibits Institutional Investors from Day Trading
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2024/01/06093022/SEBI.jpg)