SEBI CURBS SHORT SALES VIA P NOTES

In a move that could halt short selling through Participatory notes (P notes), the Securities and Exchange Board of India (SEBI) has asked foreign institutional investors (FIIs) and their sub accounts to provide details of such lending and borrowing in overseas market. FIIs have been lending third party shares held through P notes to other investors overseas, who in turn were selling such shares in Indian markets. SEBI has now said that sales in the Indian market by FIIs and sub accounts are also possible on account of the securities being lent by these entities abroad. In order to lend more transparency to the market, it has been decided that the position of the securities lent by these entities abroad shall be disseminated on a consolidated basis twice a week-Tuesday and Friday.