I read Economic Times and to my horror I found "naked short-selling will not be permitted and all investors will be mandatorily required to honour their obligation of delivering the securities at the time of settlement."
this would mean that day traders would no longer be in a position to sell and then buy back during the day. The new guideline will not only force these active investors to change the way they play the market, but also impact liquidity in the short term.
The tenure of borrowing/lending shall be fixed at 7 days. investors may have to first borrow them to short-sell and for this, exchanges may allow a one-hour window in the morning. This will allow players to borrow in the morning and sell during the day.
(Now the big question is there are times who don't know that today u r going to short sell. Its later in the day that after determing the trend u decide to first short or to first buy).
SOURCE:http://economictimes.**************...rt-sell_from_April_21/articleshow/2882753.cms
this would mean that day traders would no longer be in a position to sell and then buy back during the day. The new guideline will not only force these active investors to change the way they play the market, but also impact liquidity in the short term.
The tenure of borrowing/lending shall be fixed at 7 days. investors may have to first borrow them to short-sell and for this, exchanges may allow a one-hour window in the morning. This will allow players to borrow in the morning and sell during the day.
(Now the big question is there are times who don't know that today u r going to short sell. Its later in the day that after determing the trend u decide to first short or to first buy).
SOURCE:http://economictimes.**************...rt-sell_from_April_21/articleshow/2882753.cms