SEBI permits short selling by institutional investors;

Securities Lending and Borrowing scheme to be put in place

 

SEBI vide its circular dated December 20, 2007, has decided to permit short selling by institutional investors. Hitherto, only retail investors were allowed to short sell. In order to provide a mechanism for borrowing of securities to enable settlement of securities sold short, it has also been decided to put in place a full-fledged securities lending and borrowing (SLB) scheme for all market participants in the Indian securities market. The Stock Exchanges and the Depositories have been advised to put necessary systems in place in this regard.

 

The date of implementation of this circular will be communicated by SEBI subsequently.

 

The full text of the above circular is available on the website: www.sebi.gov.in

 

Mumbai

December 20, 2007