Short selling by institutional investors from 1 Feb : SEBI

Short selling by institutional investors from 1 Feb : SEBI
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First Published: Wed, Jan 02 2008. 12 48 PM IST
Updated: Wed, Jan 02 2008. 12 48 PM IST
New Delhi: Market regulator SEBI on Wednesday said it would allow institutional investors to start short-selling from 1 February, which was banned way back in 2001 in the aftermath of Ketan Parekh scam.
RBI has given its nod to FIIs for short selling, now SEBI will allow it for all institutional investors from 1 February, SEBI chairman M Damodaran told reporters on the sidelines of a conference on Corporate Governance here.
It would be for all institutional investors -- both FIIs and domestic ones like mutual funds, Damodaran said.
Retailers are already allowed to short-sell, that is selling shares which sellers do not own.
Damodaran’s comments came a day after the Reserve Bank allowed foreign institutional investors and their sub-accounts to short-sell shares.
Investors short-sell when they think that prices are high and will come down in future.
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First Published: Wed, Jan 02 2008. 12 48 PM IST
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