Naked Short Selling
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Context
After Hindenburg Research, a US-based short seller, released a report on the Adani Group, several questions have been raised on short selling – if it’s ethical, how it’s done, is it legal in India.
About
What is short selling?
Example: For instance, an investor borrows a certain number of shares from a broker, and sells these shares in the market for Rs 100. In the future, when the price of the shares fall to Rs 80, then the investor can buy them at a lesser price, return them to the broker, thereby making a profit of Rs 20. |
Is it legal?
Verifying, please be patient.