On 4 March 2022, IND FIA updated on eligible liquid securities for March 2022.

Background:

• 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 the number of trades in the previous month of 1000 plus.
• Based on stock outstanding as of 30 August 2021, security-wise short selling limits are outlined in annexure and can be done on the NDS-OM platform and on OTC market.