The Securities and Exchange Board of India stated that naked short selling will not be permitted, however, investors among all categories will be allowed for short selling and also futures and option trades. Investors would be necessarily honour their job of delivering securities at time of settlement, said SEBI.
No institutional investor would be allowed for intra-day trading or settle their transactions, said SEBI on short selling and borrowing scheme. Short selling refers to selling of stock that is not owned by the seller at the time of trade.