No change in existing regulatory framework for short selling: Sebi clarifies

Markets regulator Sebi on Sunday (December 21, 2025) 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 December 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 (SLB) framework.

The framework for short-selling, introduced in 2007, has largely remained unchanged since its inception.