Sebi plans major overhaul of short-selling and market rules

Market regulator Sebi is reviewing short-selling and securities lending rules to make trading smoother and improve price discovery. The plans aim to boost liquidity across financial markets and make trading more efficient.

Market Reforms

The regulator is also working on reforms for clearing systems, broker compliance, custodial services, and corporate bond market-making. These changes are designed to deepen India's capital markets while cutting down compliance costs.

Context

Market regulators regularly update trading rules to keep up with changing financial conditions and protect investors. Better liquidity and lower costs help build a safer environment for everyone trading in the markets.