SEBI Stands Firm: No Changes in Short Selling Framework

SEBI clarified there's no change in the short selling regulatory framework despite media reports suggesting otherwise. SEBI plans a comprehensive review of the framework. The existing framework, introduced in 2007, remains unchanged.

Markets regulator SEBI reiterated on Sunday that there are no changes to the regulatory framework governing short selling, countering recent media reports suggesting amendments effective from December 22, 2025.

According to a statement from SEBI, the question of any immediate changes doesn't arise, as the current framework remains intact. Media suggestions of imminent adjustments were labeled incorrect by the regulator.

SEBI Chairman Tuhin Kanta Pandey announced plans in November to establish a working group aimed at reviewing the short selling framework and the Securities Lending and Borrowing (SLB) regime. Despite being introduced in 2007, the framework has largely remained consistent.