On 16 October 2025, IND FIA wrote about short selling of IND GVT securities.
- IND FIA wrote to all members and stakeholders about short selling IND GVT securities.
- Follows IND RBI July 2018 revised guide on short selling of governments.
Revision to Process for Eligibility
- IND FIA said it has been publishing lists of liquid securities and other securities each month, based on the number of trades and traded volumes in the prior month.
- Liquid securities require at least 1,000 trades and INR 5,000 crore traded volume, with short sale limits of 2% of outstanding stock or INR 500 crore, whichever is higher.
- While other securities fall below these thresholds and have limits of 1% of outstanding stock or INR 250 crore, whichever is higher.
- Previously, the classification of liquid/other securities was approved by IND FIA monthly Valuation Committee and released ISIN-wise on the 4th of every month.
- From November 2025 onwards, Valuation Committee approval process will be discontinued.
- IND FIA will independently identify and publish the lists on the 4th of every month, strictly based on IND RBI-prescribed criteria.
Effectiveness
- The changes will be effective from 1 November 2025.
