Doing away with certain requirements related to short selling, the Securities and Exchange Board of India (SEBI) on Tuesday eased norms for entities trading in the securities lending and borrowing (SLB) segment.

The SLB mechanism allows an investor to sell securities by borrowing them from a market intermediary after putting up a collateral. Under the new rules, clearing members will not be required to enter into agreement with clients for trading in the SLB segment.

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