Asia

India's SEBI aims to ease short-selling by nearly doubling borrowable stocks

India's market regulator SEBI plans to ease short-selling by nearly doubling the number of stocks eligible for borrowing, according to a report. The move aims to boost market liquidity and price discovery. It could widen the options available to investors seeking to bet against stocks.

Stock prices on a market trading screen
Stock prices on a market trading screenPhoto: Alex Luna / Pexels
Economic Times2 h ago

India's capital-markets regulator SEBI plans to ease short-selling by nearly doubling the pool of stocks eligible for borrowing, according to a report. The step would open borrow-and-sell transactions to a much wider range of shares.

The regulator's stated goal is to boost market liquidity and strengthen the price-discovery process. Short-selling is a type of transaction that allows investors to take positions betting that a stock will fall in value.

Analysts say expanding the number of borrowable stocks could improve market depth, but they add that it warrants careful monitoring for volatility and risk management. The final scope of the rule and its implementation timeline have not yet been confirmed.

RegulationBankingAsiaEconomic Times
This article is an AI-curated summary of the original story published by Economic Times. The illustration is a stock photo by Alex Luna from Pexels and is not from the original story.

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