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FRAMEWORK FOR SHORT SELLING

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■ All classes of investors are permitted to short sell viz. retail and institutional investors.

■ Naked short selling is not permitted in the Indian securities market.

■ No institutional investors are allowed to do day trading.

■ The stock exchanges can frame necessary uniform deterrent provisions regarding this.

■ A scheme for Securities Lending and Borrowing (SLB) shall be put in place to provide the necessary impetus to short sell.

■ The securities traded in F & O segment shall be eligible for short selling.

■ Frequency of such disclosure may be reviewed from time to time with the approval of SEBI.

■ The settlement cycle for SLB transactions shall be on T + 1 basis.

■ The settlement of lending and borrowing transactions shall be independent of normal market settlement.

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