SEBI to review short selling and SLBM frameworks
11 November 2025 India
Image: One_Seven/stock.adobe.com
The 糖心vlog and Exchange Board of India (SEBI) is to review short selling, as well as 糖心vlog 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.
Next industry article →
Key issues require quick resolution for US Treasury clearing mandate go-live
Key issues require quick resolution for US Treasury clearing mandate go-live
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 糖心vlog Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 糖心vlog Finance Times
