Regulators and governments panic when markets tank but rather than curing the ailment they end up targeting short sellers who present a soft target
The moves comes after the broking industry said that Sebi's January 2024 bar on short-selling in stocks not in the future and options segment caused uncertainty
Short selling’s bad rap is an unjustified one. Short sellers play a critical role in markets and without them a trader’s life would become a nightmare
Most of the rules are merely a reiteration of the 2007 circular on short selling. There are some tweaks, but they will not have a meaningful impact on the market, at least not for the retail trader
The two provisions relate to declarations of the transactions as short sales, and to brokers and stock exchanges collating this information and making it available to public throu.gh their websites
Hindenburg’s report accused Gautam Adani of “pulling the largest con in corporate history,” claiming his conglomerate engaged in accounting fraud and stock manipulation.
The recent rout in shares of U.S. regional banks brought fresh scrutiny by criminal prosecutors and regulators of short sellers, who had previously come under review in the wake of the “meme stock” craze of 2021, Reuters and other media outlets have reported.
Price bands for scrip or a derivative contract represent the boundaries within which the competing orders of buyers and sellers are accepted for the day by the trading system of the stock exchange.
Retail investors are also wary of the market, with the SIP stoppage ratio, which is the ratio of the number of closed accounts to new accounts, at a 27-month high
The RBI’s proposed move will benefit entities such as insurance companies and pension funds, which are not allowed to engage in such activities currently.
The contentious issue of short selling has been in the news since Hindenburg Research published a report last week on Adani Group and its alleged accounting fraud.
Short sellers, including hedge funds such as Plotkin’s Melvin Capital, had wagered that GameStop shares would fall while its mall-heavy business shrank further
Small traders, who — on social media sites such as Reddit — have painted short sellers as members of an elite stacking the odds against the individual investor
Depending on where you stand, the GameStop saga is either a cautionary story about a bunch of reckless nerds destabilizing the stock market or a David-and-Goliath morality tale about a fearless band of retail investors
What exactly happened to GameStop’s stock? In a word – Reddit.
While everyone is celebrating retail traders winning over a large hedge fund, it rarely ever plays out this way. Mostly, retail ends up losing money when there is excessive speculation, says Kamath.
Yes Bank may not have participated in the rally in the banking space since March, but it has not fallen either. Everyone who wanted to exit from the bank has done so
The measures announced by SEBI would lead to winding up of speculative position but not impact those who plan to hedge their cash holdings
Effectively about 10-12% of the F&O stocks would be impacted. For most other stocks, even if MWPL are restricted, open interest is far lower to have any meaningful impact.
On the higher side, 9,000 is the key resistance that can keep the bounce in check. There could be a possible consolidation in the next week, which can unfold in the wide range of 8,000-9,000.
The shorts could be on account of creating a hedge position before selling huge quantities
SLB mechanism, introduced about a decade ago, had permitted FPIs to sell borrowed shares.
Leading bourse National Stock Exchange will levy a fee on transactions executed in securities lending and borrowing (SLB) scheme from July
Gaurav Bissa of LKP Securities says that Nifty is expected to stay range-bound within 7800-7820 level in coming few days.
The brutal selloff that the market has witnessed since June has not been without the Chinese government's efforts to prop it back up