Short Selling Mechanism applicable from 21st April 2008

[rkkarnani]

Friends, Would love to read about the latest SEBI guidelines on Short Seeling by Insitutional Investors, QIB's and Retails. In particularly for Retail Investors.

Have heard different versions from diff. people. The circular of SEBI posted on various forums was not very clear to me.
The questions cropping up in my mind :

1. Can I continue to short sell intraday and cover EOD without Holding the stock in my DP???
2. Can I continue to short sell in FnO without borrowing stocks?
3. How does borrowing take place??
4. More Important : How can I lend my shares (shares I hold in my DP) and how much do I earn from this lending??

Clarifications and Inputs welcome....
Regards
-R K Karnani
ps. : How will this mechanism affest the Market in general!!!!

 

[Satyen]

if reatail investor can short sell they what wil be the difference between FnO shorts and cash shorts ??

Regards
Satya

 

[Laksh]

if reatail investor can short sell they what wil be the difference between FnO shorts and cash shorts ??

Regards
Satya

The implications of sebi short selling guidelines are also not clear to me; but some of the possibilities for retail investors are as follows:-
1.The lot size may be much smaller
2.The leverage would be much less
3. Many investors with large holdings may find additional income by lending the held shares.

These 3 factors may lead to better risk control and are likely to find many more retail traders interested.
However, the cost is likely to be much higher than F&O. This is likely to be the major disadvantage.

Laksh

 

[swagat86]

Check this link
http://www.moneycontrol.com/india/n...t-set-for-short-selling-april-21/06/15/334401

 

[Satyen]

Thanks Laksh and swagat


Regards
Satya