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Sebi considers short selling ban, trading curbs to reduce market volatility

Last week, the finance ministry hauled up the market regulator, seeking immediate action to curb the free fall in the market, sources said

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Short selling is a trading strategy that bets on a decline in the share price.

Samie ModakShrimi Choudhary Mumbai, New Delhi
The Securities and Exchange Board of India (Sebi) is working on a plan to arrest the deep market sell-off and reduce volatility, which has spiked to record levels owing to the damage caused by the coronavirus pandemic. A ban on short selling, mandatory delivery-based trading, and invoking the so-called additional surveillance mechanism (ASM) for highly volatile stocks are among the proposals being considered, said people in the know. 

If the market continues to fall, Sebi would announce at least some of these measures to reduce excessive speculation and prevent traders from exacerbating the fall, they added. 

Last week, the finance

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First Published: Mar 16 2020 | 12:52 AM IST

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