Short Selling means selling of a stock that the seller does not
own at the time of trade. Short selling can be done by borrowing the stock
through Clearing Corporation/Clearing House of a stock exchange which is
registered as Approved Intermediaries (AIs). Short selling can be done by retail
as well as institutional investors. Naked short sale is not permitted in India,
all short sales must result in delivery, and information on short sale has to be
disclosed to the exchange by end of day by retail investors, and at the time of
trade for institutional investors. The Securities Lending and Borrowing
mechanism allows short sellers to borrow securities for making delivery.
Securities in the F&O segment are eligible for short
selling.
Securities Lending and Borrowing (SLB) is a scheme that has been launched to enable settlement of securities sold short. SLB enables lending of idle securities by the investors through the clearing corporation/clearing house of stock exchanges to earn a return through the same. For securities lending and borrowing system, clearing corporations/clearing house of the stock exchange would be the nodal agency and would be registered as the "Approved Intermediaries"(AIs) under the Securities Lending Scheme, 1997.
Under SLB, securities can be borrowed for a period of 7 days through a screen based order matching mechanism. Securities in the F&O segment are eligible for SLB.
Securities Lending and Borrowing (SLB) is a scheme that has been launched to enable settlement of securities sold short. SLB enables lending of idle securities by the investors through the clearing corporation/clearing house of stock exchanges to earn a return through the same. For securities lending and borrowing system, clearing corporations/clearing house of the stock exchange would be the nodal agency and would be registered as the "Approved Intermediaries"(AIs) under the Securities Lending Scheme, 1997.
Under SLB, securities can be borrowed for a period of 7 days through a screen based order matching mechanism. Securities in the F&O segment are eligible for SLB.
