Securities and Exchange Board of India
Chief General Manager
Market Regulation Department-Division of Policy
E-mail: mdrao@sebi.gov.in
MRD/DoP/SE/Cir- 05/2008
March 19, 2008
The Executive Directors/Managing Directors/Administrators of all Stock Exchanges Managing Director & CEO, NSDL Managing Director & CEO, CDSL
Dear Sir / Madam,
Sub:- Operationalisation of Short Selling and Securities Lending and Borrowing
SEBI vide circular dated December 20, 2007 had specified the broad framework for short selling by institutional investors and a full-fledged securities lending and borrowing scheme for all market participants.
It has been decided to operationalise the above with effect from Monday, April 21, 2008.
The Stock Exchanges and the Depositories are advised to :
3.1 make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision.
3.2 bring the provisions of this circular to the notice of the member brokers/clearing members, depository participants and also disseminate the same on their website.
3.3 communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Yours faithfully,
S V Murali Dhar Rao
