SEBI said to ease short stocks by nearly doubling those eligible for borrowing
SEBI is planning to nearly double the number of stocks eligible for lending and borrowing while reducing collateral requirements to boost the cash equities market. The move is intended to shift investor focus away from the riskier derivatives market.
Why it matters
This regulatory shift aims to improve market liquidity and reduce retail investor exposure to high-risk derivative instruments.
India’s markets regulator SEBI aims to make it easier for investors to short stocks by nearly doubling the number of shares eligible for lending and borrowing and by cutting collateral requirements, two people with direct knowledge of the plans said.
The article provides a straightforward report on regulatory changes and the rationale behind them based on industry knowledge.
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