Sebi sub-group to study short sales pattern
Mumbai: The Securities and Exchange Board of India (Sebi) has constituted a sub-group under the chairmanship of D. C. Anjaria to examine the pattern of short sales on the market and recommend ways to regulate them. The sub-group will also look at the down-tick rule for short sales and to examine the feasibility of market-wide scrip-wise intra-settlement position limit for short sales or long purchases. It will also consider the issue of imposing margins beyond certain position limits.

The group would conduct a detailed study of the empirical data available for the last three years and in particular over the past six months to examine the impact of short sales on price volatility in the market. The group will also suggest measures to encourage stock lending so that more short sellers are covered by delivery through stock market borrowing and it will examine the issue of a creating a level playing field for the short sellers and the long buyers.
Back to News Review index page