Sebi to revamp short-selling, securities lending rules

India’s markets regulator, the Securities and Exchange Board of India (Sebi), is preparing a series of market reforms that will include changes to short-selling and securities lending rules.

The planned overhaul forms part of a broader effort to improve trading efficiency, strengthen safeguards and deepen the country’s capital markets.

Focus on market functioning

Short selling and securities lending are key areas covered by Sebi’s proposed rule changes. The regulator has not provided further details on the specific provisions or the timeline for implementation.

By reviewing these rules, Sebi is seeking to support more efficient trading while reinforcing protections within the market. The initiative also reflects the regulator’s wider objective of developing India’s capital markets.

What comes next

The reforms remain at the planning stage. Further details will be needed to assess how the proposed changes could affect market participants and securities-lending activity.