- SEBI clarified no change in the short selling regulatory framework that currently exists
- The clarification followed incorrect media reports about changes from Dec 22, 2025
- SEBI stated no change in the framework will take effect tomorrow as some reports claimed
Markets regulator Securities and Exchange Board of India on Sunday clarified that there is no change in the existing regulatory framework for short selling.
The clarification comes after a media reported about changes in the short selling framework that would become applicable from Dec. 22, 2025.
"In this context, SEBI expressly clarifies that there is no change in the existing regulatory framework for short selling. The question of any change in this framework from tomorrow, as reported incorrectly by the media story, therefore, does not arise," the regulator said in a statement.
In November, SEBI Chairman Tuhin Kanta Pandey had stated that the regulator will soon set up a working group to undertake a comprehensive review of short selling and the Securities Lending and Borrowing framework.
The framework for short selling, introduced in 2007, has largely remained unchanged since its inception.
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