The Securities and Exchange Board of India today decided to work on a plan to allow short selling by institutional investors and to support the same with a stock lending and borrowing system. Sebi is expected to shortly come out with details of a stock lending and borrowing programme. | |
| Sebi Chairman M Damodaran after a board meeting here said "Issues of stock lending and borrowing as well as short selling by financial institutions have been a matter of concern for some time and we have addressed them at today's meeting." |
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| Short selling takes place when investors sell shares they actually possess. In the current system, retail investors can sell short during the course of a day's trading, and subsequently during the same trading session execute a purchase transaction to close their position. |
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| The National Stock Exchange ran a stock lending program in the late 1990s. |
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