Sebi to Revamp Short-Selling and Securities Lending Rules To Boost Market Liquidity

Economic Times Markets · stocks

The Securities and Exchange Board of India (Sebi) is revamping its framework for short selling and securities lending and borrowing (SLB) to enhance market liquidity and price discovery. Chairman Tuhin Kanta Pandey announced the review, which aims to deepen capital markets and address demands from participants. Sebi will also simplify compliance for stockbrokers and depository participants, and improve capital efficiency by addressing costs in tender offers and buybacks. Additionally, the regulator is developing a market-making framework to boost secondary market trading in corporate bonds.