Sebi's Strategic Review of Short Selling and SLB Frameworks
Sebi plans a comprehensive review of the short selling and Securities Lending and Borrowing frameworks, signaling potential updates. The frameworks, largely unchanged since their introduction in 2007 and 2008, require reevaluation to align with global standards. Sebi Chairman Tuhin Kanta Pandey emphasizes a data-driven, consultative approach for these changes.
- Country:
- India
Sebi is set to overhaul its approach to short selling and the Securities Lending and Borrowing (SLB) frameworks as part of a drive to modernize the Indian financial markets, Chairman Tuhin Kanta Pandey announced this Friday at the CNBC-TV18 Global Leadership Summit.
Introduced in 2007 and 2008, respectively, both frameworks have seen minimal changes. Experts have cited the necessity for updates to keep pace with global markets. At present, the SLB allows share lending through demat accounts to generate extra income for lenders while boosting market liquidity.
Pandey emphasized a careful, data-driven strategy for these regulatory changes, reflecting longstanding market dynamics. He acknowledged global investors’ confidence amidst FPI outflow concerns, reaffirming India's strong market resilience bolstered by individual and domestic institutional investors.
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