In a significant move, the Securities and Exchange Board of India (SEBI) has introduced regulations governing short-selling trades, explicitly prohibiting naked short selling.
SEBI's proactive measures to enhance market integrity and investor protection. With a focus on curbing excessive speculation, the regulatory body has tightened rules around short selling practices. Notably, the ban on naked short selling aims to mitigate risks associated with this aggressive trading strategy. Investors and market participants will need to adhere to the updated guidelines, signaling a concerted effort by SEBI to maintain a robust and fair trading environment in the Indian securities market.