No proposal to ban short selling: exchanges

Deny any such move by regulator SEBI

The stock exchanges on Monday clarified that the Securities and Exchange Board of India (SEBI) was not considering any proposal regarding a ban on short selling to curb the ongoing volatility and equity sell-off.

The spokespersons for BSE and the National Stock Exchange (NSE) said ‘there is no proposal on ban on short selling with SEBI’, after a media report suggested that the capital markets regulator was considering such a ban among other measures.

Regulators in a few countries like Spain, South Korea and Italy have banned short selling amid huge volatility and a fall in stock prices.

Traders’ bet

Short selling refers to a strategy by which traders bet on a decline in prices and try to profit at a time when the markets are falling.

Indian indices have fallen more than 25% from their record highs reached in January.

In market parlance, a fall of over 20% is looked upon as a sign of the markets entering a bear market.

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Printable version | Jul 14, 2020 4:53:53 PM |

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