The Argument: Short Selling is Good for the Market

The Argument: Short Selling is Good for the Market

Indian regulator SEBI has kept short sellers on a pretty short leash. However, according to a recent report, SEBI may finally be loosening its short selling rules.

  • SEBI is considering doubling the number of stocks eligible for short selling through the Securities Lending and Borrowing (SLB) mechanism; while also lowering collateral requirements;
  • Currently only about 176 stocks are eligible; barely a fraction of the thousands listed on Indian exchanges;
  • SEBI also, wants to make it easier for investors to short stocks.

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