Why are penny stocks are not allowed to be shorted in Zerodha?


Why am I not able to short sell penny stocks in Zerodha.


Penny stocks usually have 5% circuit limits

So if you short and stock hits 5% upper circuit, then how will you close your short trade?


Still don’t understood the answer of the question.


Generally penny stocks trade in T2T category…so one has take delivery before selling it…