The Securities and Exchange Board of India (SEBI) released its framework for short selling. The framework includes outlining the roles and responsibilities on the banned practice of naked short selling along with which instruments are available for shorting, such as futures and options, all of which are subject to review by the financial markets watchdog.
Among the rules, institutional investors are mandated to disclose upfront at the time of placement of the order whether the transaction is a short sale. However, retail investors would be permitted to make a similar disclosure by the end of the trading hours on the transaction day.
Brokers are mandated to collect the details on scrip-wise short sell positions, collate the data and upload it to the stock exchanges before the commencement of trading on the following trading day. The stock exchanges shall then consolidate such information and disseminate the same on their websites for the information of the public on a weekly basis. The frequency of such disclosure may be reviewed from time to time with the approval of SEBI.