Securities and Exchange Board of India (SEBI) issued a clarification on December 21, 2025, addressing a media report that incorrectly claimed changes to the short selling framework would come into effect from December 22, 2025. SEBI categorically stated that there has been no change to the existing regulatory framework governing short selling. The regulator emphasized that the media report was inaccurate and that any suggestion of a new or revised framework becoming applicable from the following day was unfounded. By issuing this clarification, SEBI sought to prevent market confusion and reassure investors and intermediaries that the prevailing rules on short selling continue unchanged. The clarification underscores SEBI’s commitment to transparency and timely communication to counter misinformation that could potentially affect market behavior. Consequently, all market participants are required to continue complying with the existing short selling regulations, as no amendments, relaxations, or new obligations have been introduced pursuant to the reported news item.
Securities and Exchange Board of India
Clarification on a news item
Press Releases No. 85/2025 | Dated: December 21, 2025
SEBI has come across a media article incorrectly reporting about changes in short selling framework which would become applicable from December 22, 2025.
In this context SEBI expressly clarifies that there is no change in the existing regulatory framework for short selling. The question of any change in this framework from tomorrow, as reported incorrectly by the media story, therefore, does not arise.
Mumbai
December 21, 2025
