Archive · 22 Dec 2025
SEBI Clarifies No Changes to Short Selling Framework
SEBI, which is like the boss of the stock market in India, said that there are no new rules about short selling.
Some news reports said that new rules would start on December 22, 2025, but SEBI said that's not true.
Short selling is when you sell a stock that you don't actually own.
Everyone can do it, but you have to follow some rules.
For example, you can't do 'naked' short selling, which means you must have the stock to sell.
Big investors have to say upfront if they're short selling, and regular people have until the end of the day.
Brokers have to collect this information and share it with the stock exchanges, which then put it on their websites every week.
SEBI clarified that there are no changes to the existing short selling framework.
Reports suggesting changes to the framework starting December 22, 2025, are false.
Short selling is defined as selling a stock that the seller does not own at the time of trade.
Naked short selling is not permitted, and investors must deliver securities at settlement.
Institutional investors must disclose short sales upfront, while retail investors have until the end of the trading day.
- Who
- SEBI (Securities and Exchange Board of India)
- What
- Clarification on short selling framework
- When
- December 21, 2023
- Where
- India
- Why
- To correct misinformation about changes in short selling regulations
- Regulator
- SEBI
- Short Selling Definition
- Selling a stock the seller does not own
- Naked Short Selling
- Not Permitted
- Institutional Investor Disclosure
- Upfront at order placement
- Retail Investor Disclosure
- By end of trading hours
- Broker Requirements
- Collect and upload short sell data to exchanges
- Data Dissemination
- Weekly on stock exchange websites