Business Standard

Short-sale of liquid ETFs gets Sebi nod

Related News

Marker regulator Securities and Exchange Board of India (Sebi) on Thursday said index exchange traded funds (ETFs) would be eligible for trading in the securities lending and borrowing (SLB) segment. The move would facilitate short-selling in the ETF segment.

Sebi, however, has said only would be allowed under SLB. “An index ETF shall be deemed ‘liquid’, provided the Index ETF has traded on at least 80 per cent of the days over the past six months and its impact cost over the past six months is less than or equal to one per cent,” the regulator said in a circular.

“Position limits for SLB in respect of ETFs shall be based on the assets under management of the respective ETF,” it added.

Under the SLB mechanism, investors can lend their idle shares to borrowers through the clearing corporation of a stock exchange, to earn interest. The borrowers, on the other hand, can trade, typically go short, in such securities. Short-selling refers to selling of a stock that is not owned by the seller at the trading time.

further tweaked the SLB framework to allow rollover facility for lenders and borrowers. Sebi has allowed lenders or borrowers of shares to roll over their positions once the tenure of the contract comes to an end.

Read more on:   
|
|
|
|

Read More

BSE launches carbon index

Premier bourse BSE, in collaboration with the UK government, today launched BSE Carbonex, the first-of-its-kind index in India or any emerging market ...

Quick Links

 

Market News

Order against 17 entities for unfair practices

The Securities and Exchange Board of India (Sebi) on Tuesday passed an order against 17 entities in a case of market manipulation. The regulator ...

Comexes' Aug turnover at 5-yr low

CTT, low participation and weak trading sentiment seen as main reasons for falling volumes in this period

Futures market sees hope in forward trades

Experts say there is a need for amendments to the Forward Contracts Regulation Act to empower FMC and pave the way for introducing option and ...

FTIL to exit exchange business

To focus on technology; company rules out possibility of removing Jignesh Shah

MCX trying to get nod for contracts for next year

At Multi Commodity Exchange (MCX)'s 12th annual general meeting (AGM) on Tuesday, the company said its management was making all efforts to sign ...

Back to Top