Delhi: Institutional investors may soon be able to
short sell shares, settled by delivery, in the Indian
stock exchanges. The Securities and Exchange Board of
India (SEBI) chairman, M Damodaran, has given an indication
to this effect here today.
by institutions will soon be allowed," Damodaran
told reporters on the sidelines of Financial Planning
Congress 2007, organised by the Financial Planning Standards
finance minister, P Chidambaram, had said in his Budget
speech that institutional investors would be allowed short
selling, settled by delivery, and also securities lending
and borrowing to facilitate delivery.
in-principle approval for short-selling by institutional
investors, both domestic and foreign, had been given by
the SEBI board as far as back as March 22, but the guidelines
had yet to be issued.
Damodaran also said that he expected the Investor Protection
Fund (IPF) to be in place by next month. "We need
a Board decision to set up this fund. The Board will consider
this at its meeting on June 30", he added.