On 4 February 2022, IND FIA issued eligible liquid securities for the month of February 2022.

Background:

• IND FIA updated on the eligible securities for the short selling of the Government of India liquid securities applicable for the month of September 2021.
• As per RBI guidelines, banks/PDs can short sell eligible IND GVT securities up to the regulatory limit, which is 2% of the outstanding stock or INR 500 Cr for liquid.
• Or 1% of the outstanding stock or INR250 Cr whichever is higher for illiquid securities.
• The liquid securities are selected based on total traded volume in the entire previous month of INR 5000 crore plus, and number of trades in previous month of 1000 plus.
• Short selling limits are outlined in annexure, and can be done on NDS-OM platform and in OTC market.