Do you think Sebi was justified in banning short sales?
Bhavesh Parekh: I believe that banning short sales is one of the harshest weapons that Sebi has used for dealing with the market debacle. It has more cons than pros. On the positive side, it will provide an exit route to a few genuine investors and particularly bankers who have given loans against shares. Short sales could have resulted in a free fall of the market. But banning short sales is not going to prevent the market from falling either. Yatin Shah: As a temporary measure, the ban might be effective in providing protection. One should be able to take a view on the market, whether bullish or bearish, which is not possible with the continuation of the ban. Volumes are already falling drastically. Once the clean-up operation is through, the ban should be removed. Ajit Verma: The ban on naked short sales has dampened the speculative element in the market. In my view, the regulatory authority should consider the ban as a short-term measure. It should make sure to revoke it in the lon
