Hi!
I would like to know whether it is possible to carry forward a short selling position to overnight for any stock.
No, you cannot carry forward your short position in stock.
I was reading on Investopedia that it is possible and brokerage houses lend these shares with some interest on condition to return them in future. So long there is no margin issue or nothing negativity happens a trader can keep these short positions open.
In United States, carrying forward your Short position overnight is allowed, SEBI doesn’t allow this in India, if you want to Short then only way is to take Short position in Futures of the particular stock.
Ah… Here SEBI, big boss is forbidding. I know, that I can do it for future. But sometimes to execute arbitrage strategy it needs to deploy the opposite, i.e. Shorting the Stock.
Retailers are not allowed, however institutions are allowed. There is specifically Securities Lending & Borrowing (SLB) mechanism for this.
NSE and BSE do have Securitues Lending and Borrowing (SLB) platform. You can learn more on the same here:
After having read it seems to me a very complex and time consuming process. While I need to execute any trade to take the opportunity of arbitrage if I have to go this long process, I think the opportunity will slip away by that time… Is not there any straightforward way to borrow shares within a couple of seconds or a minute?
Currently there is no way.
Is there any online option to complete the formalities instead of physically signing the contract? Please.