SEBI said to ease short stocks by nearly doubling those eligible for borrowing
Practice PYQs on this topic
500+ questions on Economy with explanations
📌 Summary:
-
SEBI plans to make short-selling easier by nearly doubling the number of shares eligible for securities lending and borrowing (SLB) and by cutting collateral requirements
-
The objective is to boost the cash equities market and draw investors away from the far larger derivatives market
-
The derivatives segment has seen explosive growth but carries much larger risks, particularly for retail investors — a persistent regulatory concern
🎯 UPSC Relevance: GS3 Indian Economy — capital market regulation, deepening of cash equity markets, protection of retail investors from derivatives risk
📝 Prelims Facts:
-
Short selling: selling borrowed shares in expectation of a price fall; SLB is the regulated mechanism for lending/borrowing shares
-
SEBI is the statutory capital markets regulator established under the SEBI Act, 1992
🔑 Key Term: Securities Lending and Borrowing (SLB) — a regulated system where holders lend shares to traders (typically short-sellers) for a fee against collateral
UPSC Classification
See PYQs related to “Economy”
Every classification tag above links to actual UPSC questions asked on that topic — with answer, explanation and elimination logic. Only in the app.