SEBI to review short selling and SLBM frameworks
11 November 2025 India
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The Securities and Exchange Board of India (SEBI) is to review short selling, as well as Securities Lending and Borrowing Mechanism (SLBM) frameworks.
The announcement was made by SEBI Chairman Shri Tuhin Kanta Pandey at the Global Leadership Summit, where he revealed plans to form a working group to undertake this task.
Pandey says the regulatory body is focused on deepening the cash equities market in India to spur capital formation.
In his speech, he noted: 鈥淎n active securities lending and borrowing scheme is critical for improving price discovery and facilitating interlinkage between the cash and derivatives segments.
鈥淔rom a borrower鈥檚 perspective, it facilitates the settlement of securities sold short, while lenders can earn a fee on their idle securities.鈥�
The framework for short selling was introduced in 2007 and has remained unchanged, while the SLBM was introduced in 2008 and modified a few times subsequently.
Pandey says this segment remains 鈥渟ignificantly underdeveloped鈥� compared to other jurisdictions.
The announcement was made by SEBI Chairman Shri Tuhin Kanta Pandey at the Global Leadership Summit, where he revealed plans to form a working group to undertake this task.
Pandey says the regulatory body is focused on deepening the cash equities market in India to spur capital formation.
In his speech, he noted: 鈥淎n active securities lending and borrowing scheme is critical for improving price discovery and facilitating interlinkage between the cash and derivatives segments.
鈥淔rom a borrower鈥檚 perspective, it facilitates the settlement of securities sold short, while lenders can earn a fee on their idle securities.鈥�
The framework for short selling was introduced in 2007 and has remained unchanged, while the SLBM was introduced in 2008 and modified a few times subsequently.
Pandey says this segment remains 鈥渟ignificantly underdeveloped鈥� compared to other jurisdictions.
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