Shorting Stocks not in FnO


#1

Is there any way to short a stock which is not listed in derivative segment for overnight positions.


#2

You can do that using SLBs(Stock Lending and Borrowing).
You basically borrow the stock from a person who holds it at a fixed lending fee then sell it in the market. You have to buyback the stock before a certain date(Expiry of the SLB) and give it back to the lender.

Not many brokers offer it(including Zerodha) as there are additional margins(125% of the value of the stock). There is very little liquidity due to this.

More information on the NSE website