Is short selling a business profit?
Short selling means the sale of a security that the seller does not own at the time of trade. Sebi has released a discussion paper prepared by its Secondary Market Advisory Committee on the issue of short selling and securities lending. Under the present regulations, investors such as banks and mutual funds are specifically prohibited from short selling. It is proposed that these investors be allowed to short sell and bring them at par with other retail investors. The recommendations of SMAC include complete prohibition on naked short sales.
