Fm Apprised Of Short Selling Effects

Sebi has told the ministry that short sales in India are not specifically prohibited, and pointed out that in the United States such sales are prohibited under certain conditions.

The regulator has, however, said that some existing Sebi regulations and exchange bylaws have a bearing on short sales.

Sebi has also informed the finance ministry that the United States has specific definitions for short sales. Both Sebi and the finance ministry have been concerned over the short selling issue of late. A Sebi group is also looking into this aspect and studying the US experience.

The market regulator has said short selling has not been defined under either the Sebi regulations, the stock exchange bylaws or even the Securities Contracts (Regulation) Act.