What are the rules of shorting in India? What is the difference between naked shorts and covered shorts?

Could someone explain the rules of shorting in India? what is allowed and what is banned? what is the latest rules for both segments ie, equity and derivatives?

Also i would like to know the difference between naked vs covered shorts. Since naked shorts is banned in India, how can we take care to avoid entering a naked short?

you can look at this

Covered call writing is if you have one lot of Stocks in holding, then you can short Call Option of that stock, so that you can get premium amount. You can also short futures.

Difference between Futures and Stock is the amount you can earn if you hold the shorting position till expiry. Percentage of Earnings equivalent to Cost of Carry (% per annum like Bank Interest)

you don’t loose any thing even if the stock moves in any direction.

Naked shorts are not banned in India. but there are stringent rules for doing that.