Mumbai, January 4 (IANS). According to a new circular issued by market regulator SEBI on Friday, institutional investors will have to inform in advance while placing orders whether the transaction is short selling or not.
However, the order states that retail investors will be allowed to make similar disclosures till the end of trading hours on the day of transaction.
According to the order, “Brokers will be mandated to collect details on share-wise short selling positions, aggregate the data and upload it on the stock exchanges before the commencement of trading on the next trading day. The stock exchanges will then consolidate such information and “We will disseminate the same on our websites every week for public information. The frequency of such disclosures may be reviewed from time to time with the approval of SEBI.”
SEBI has allowed short selling by all categories of investors like retail and institutional investors but has also imposed certain conditions to prevent dishonesty.
The decision comes right after the Supreme Court's verdict on petitions seeking a court-monitored probe into alleged manipulation of Adani Group shares following the Hindenburg report.
The top court rejected the petition, but asked Sebi to investigate whether Indian investors suffered loss due to the actions of the research agency or whether short positions were taken in the market which was against the law.
SEBI had earlier issued a master circular for stock exchanges and clearing corporations in October 2023, which has now been updated with the inclusion of new provisions in the latest circular.
–IANS
AKJ
