India's SEBI to Ease Short‑Selling Restrictions, Doubling Eligible Stocks

India's Securities and Exchange Board (SEBI) is preparing to relax short‑selling rules in the cash equities market. The regulator plans to double the number of shares that can be borrowed for short positions, expanding eligibility from roughly 5 % of listed companies (about 176 of 2,600) to a majority of liquid stocks. It will also lower collateral requirements and ease thresholds for liquidity and trading volume, such as an average monthly turnover of at least 1 billion rupees and derivatives exposure of the same scale.

The changes aim to boost activity in the cash‑equity segment and draw investors away from the larger derivatives market, improving price discovery and market balance. SEBI expects to finalize the revised framework by the end of the year.