Regulation Department-Division of Policy
MRD/DoP/SE/Cir- 05 /2008
- The Executive Directors/Managing
of all Stock Exchanges
Director & CEO, NSDL
Director & CEO, CDSL
Dear Sir / Madam,
Sub:- Operationalisation of Short
Selling and Securities Lending and Borrowing
- SEBI vide circular dated December 20,
specified the broad framework for short selling by institutional investors
and a full-fledged securities lending and borrowing scheme for all market
- It has been
decided to operationalise the above with effect from Monday,
April 21, 2008.
- The Stock
Exchanges and the Depositories are advised to :
3.1 make necessary
amendments to the relevant bye-laws, rules and regulations for the
implementation of the above decision.
3.2 bring the provisions
of this circular to the notice of the member brokers/clearing members,
depository participants and also disseminate the same on their website.
3.3 communicate to SEBI, the status of the implementation
of the provisions of this circular in the Monthly Development Report.
circular is being issued in exercise of powers conferred under Section 11
(1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996, to
protect the interests of investors in securities and to promote the
development of, and to regulate the securities market.
S V Murali Dhar Rao