With countries like Italy, Spain and now South Korea banning short selling, will India also join the list of countries to ban short selling ?
You’ll find out if they do.
How likely is it, according to you?
how can it happen in India ? traders do intraday short selling in cash equity !!!
In 2008 it was not banned, according to me it was a right decision.
but who know what will come next…
i don’t think it’s necessary. markets can rebound quicker than the fall.
we saw an example of that today. Also, everything is coming back to normal in china.
With many new changes coming to our markets, it looks like they are trying to build a safer marketplace for people to trade while mitigating losses.
I believe we are following the path of global standards. Whatever the standards maybe.
They cannot ban short selling in all the stocks , but short selling was banned for a particular stock , dont remember it name .
Short selling is a foundation for market. If you are saying to not allow it in market fall then
they might also ban fresh buying on upper circuits.
Even if it is banned, derivatives can be traded.
Short selling should not be banned in my opinion as it enables trades take short term positions . Short selling is a crucial part of the economy as it ‘makes the market’ and creates liquidity.
However, the reason some countries like china who have put a ban on short selling is, it reduces the speculation in the market that leads to a sudden market crash. It brings stability in the market. Global crisis and wide spread fear of Covid-19 that led the market to crash with nifty hitting lower circuits could have been avoided with a ban of short selling.
China doesn’t have free markets .