Thursday, March 20, 2008

Sebi Allows Short Selling from April 21

The long wait is over for stock market participants. Regulator Sebi has finally announced that short-selling and stock lending and borrowing will be operational from April 21.

Short-selling will only be allowed in futures and option stocks, for a period of 7 days, after which its positions will have to be squared off.

Sectoral FDI caps will be available for short-selling. Many of the sectors, which have a low FDI cap and where FII limits have been crossed, will not be eligible despite being in the F&O segment.

Institutions and investors borrowing stocks will have to pay a margin fee to the lender.

Disclaimer

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