I’m just curious to know why short selling of stocks is not possible for the positional purpose. I mean why only intra-day short selling feature is allowed for retails and why not positional. Why there is no transparency in the system. I know I can trade in futures but as you all know lot size is too high for someone to short that big in futures.
Is there any brokerage firms other than zerodha, out there that allow me to short sell stocks on positional or swing basis .??
according my knowledge there are 2 possible things as buying in equity delivery or selling it fro intraday is fair enough as the shares doesnt get into ur demat account
now, coming part of short delivery if u sell the stocks u will be getting as -ve positions as u sold the shares without having shares in ur demat, a perosn who buys from u doesnt get any shares in his demat account and this cannot be exersied .
2nd possibe thing: allowing short delivery will also enhance the indian economy as if u start selling and lets say many investors and traders does the same thing which will also enhance the indian economy to move down as many of traders and investors just concerned abt they make money. but looking forward to economy growth its only in terms of buy stocks in delivery.
You can always do STBT / BTST which is a swing trade.
Well, when u short sell a stock, word “short” itself means that u are SHORT of something.
You borrow stocks from your broker & sell them off. But since u never owned them in the first case , so u will have to buy them back & close the position by end of day.
This is very important because otherwise if u are selling something which u don’t own & when someone is buying from you, then u need to give the delivery of the stocks u shorted.
Since u never owned the shorted stocks, u cant successfully give the delivery on T+ 2 basis.
So unless you close your position on intraday or STBT, u will end up creating short delivery & liable for penalty, & exchange will buy it on behalf of u from auction market at the highest price of the day & deliver it to the buyer.
short selling was banned by SEBI in 2001 after K10 scam.
as far as i know our market is the only market where direct short selling is banned , other regulators ban short selling temporarily only when there is a significant downnside risk …