What's the latest on naked shorting of stocks?

[edude]

Hi,

• Is naked shorting of stocks on intraday basis still allowed? There was some news that you need to declare ahead etc.

• Does the broker square off automatically my short position, if I don’t cover?

Thanks,

[Meher_Smaran]

Hi @edude

@edude

Is naked shorting of stocks on intraday basis still allowed? There was some news that you need to declare ahead etc.

Check this post out

SEBI's latest circular on framework for shortselling - Jan 2024

On 5th January 2024, SEBI issued the latest circular on the framework for short-selling adding two new provisions where institutional investors now have to disclose upfront whenever they place a short-sell order and exchanges shall publish the information for the public every week. Here’s a breakdown of what changes and what doesn’t. What changes for retail traders? Nothing at all. This circular mainly addresses the additional disclosures that institutions need to make when they wish to shor…

@edude

Does the broker square off automatically my short position, if I don’t cover?

Yes

How to short sell shares in equity and futures?