The Securities and Exchange Board of India (SEBI) has alerted concerned local and international regulators about unauthorised trading practices by foreign portfolio investors (FPIs) on the Indian exchanges, the Economic Times reported.
As per SEBI guidelines, FPIs are barred from short selling stocks. In an email, the watchdog has asked the concerned custodians, which liaison offshore funds and the Indian market, to follow rules.
Moneycontrol could not independently verify the report.
The paper quoted a source as saying that while SEBI may have spotted a few stray incidents and the practise may not be widespread.
SEBI did not respond to the paper’s queries.
A SEBI statement which came in November-end reiterated guidelines which stated that FPIs were disallowed from to short-sell in the Indian market, except as specified under the Securities Lending & Borrowing (SLB) framework.
Introduced almost 10 years back, the SLB framework allows FPIs to sell borrowed shares.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India’s leading expert on wealth building, has created a strategy which makes it possible… in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.
- North Korea fires short-range missile: Report
- Government issues draft rules for National Financial Reporting Authority
- Truck driver cheats onion trader of 22 tonnes of produce, sells stock en route
- North Korea launches short-range 'projectiles': report
- GM is serious about electric Hummer, wants LeBron James to sell it, report says
- Brexit: Irish border issue could land UK in court, report finds
- SEBI to retain cash market margin rules, NRIs may get relief after Jan 8 meet
- 12 stocks that are likely to see action due to Amfi’s m-cap rejig
- Sebi restrains Vrise Securities from registering new clients for 6 months
- Check Out: What made these 10 stocks move the most last week
