India SEBI Eases Short Selling Rules
Analysis based on 9 articles · First reported Jul 06, 2026 · Last updated Jul 06, 2026
The proposed changes by the India — Securities and Exchange Board of India (SEBI) are expected to boost the cash equities market in India by making short selling easier, potentially attracting more investors and capital. This could lead to increased liquidity and efficiency in the National Stock Exchange of India, while also aiming to mitigate the high risks associated with the country's large derivatives market for retail investors.
The India — Securities and Exchange Board of India (SEBI) plans to significantly ease rules for short selling in India by nearly doubling the number of stocks eligible for lending and borrowing and reducing collateral requirements. These changes are intended to bolster the cash equities market and divert investors from the country's rapidly growing, but riskier, derivatives market, where a high percentage of retail investors incur losses. Currently, only 176 out of 2,600 listed companies on the National Stock Exchange of India are eligible for such activities. The final details of these regulatory adjustments are expected by the end of the year.
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