SEBI cracksdown on shortselling will come into effect from March 23 onwards
The Securities and Exchange Board of India (SEBI) on 20 March has announced measures to make short sale of shares difficult to counter market volatility due to the coronovirus crisis.
SEBI said it had discussed with the stock exchanges and suggested appropriate measures to corporations and depositories that might be in the current circumstances. It said that unusually high volatility in the market needs attention.
The regulator stated that it would come into effect from the start of business on March 23, 2020, and more appropriate steps would be taken if needed.
Announcing the measures, SEBI has proposed to step up the margin for non-F&O shares to 40 per cent in a stepwise manner. The proposed margin will be applied only in the cash market and may be applicable for a period of one month.
The regulator said that the market position limit on F&O shares can be reduced by up to 50 percent.
