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SEBI has issued a statement on the rumors spread about short selling in the stock market. The regulator has clarified that no changes have been made in the existing rules. Also, no new system is going to be implemented from 22 December 2025. SEBI termed the media reports as wrong and said that the framework of short selling remains the same as before. SEBI also made it clear that the rules may definitely be reviewed in future, but at present investors do not need to worry about any immediate changes.
New Delhi. Market regulator SEBI has clarified the situation in clear words on the ongoing speculations regarding short selling in the stock market. SEBI has said that no changes have been made in the existing rules related to short selling nor are any new rules going to be implemented from December 22, 2025. This clarification from the regulator comes after a media report which claimed that there are going to be major changes in the short selling framework.
SEBI says that the news in the media is completely wrong and it may spread confusion among investors. The regulator has bluntly said that the rules currently in force regarding short selling will remain the same in future also and there is no question of any immediate change.
what did sebi say
SEBI clarified in its statement that there has been no change in the existing regulatory framework of short selling. According to SEBI, saying in the media that the rules will change from December 22 is completely wrong and investors have been misled by it.
What indications did the chairman give earlier?
Earlier in November, SEBI Chairman Tuhin Kanta Pandey had said that a working group will be formed for a comprehensive review of the SLB framework for short selling and securities lending and borrowing. However, that statement did not mean any immediate change, but was related to a long-term review process.
Almost the same rules since 2007
The current framework of short selling in India was implemented in the year 2007. There have been no major changes in it since then. SEBI says that there is definitely talk of reviewing the rules, but until any formal decision is taken, the existing system will remain in force.
What does it mean for investors?
After this clarification from SEBI, it has become clear that investors do not need to worry about any new rules or sudden changes regarding short selling. Trading will continue under the same rules currently in force in the market.
