National Stock Exchange of India ‘to introduce short selling’

The National Stock Exchange of India is planning to introduce short selling in an attempt to encourage foreign investors into the market, CEO Ravi Narain has told Bloomberg.

The bourse will make the move in the next few weeks in order to meet a “huge demand”, Ravi Narain told the news provider in an interview in his Mumbai office.

“Very soon, we’ll have finished building our systems and we’ll launch this, and then people will be able to short,” he added. “There’s been a huge demand for lending and borrowing of shares.”

National Stock Exchange’s move comes just a few months after Chinese regulators allowed the trialling of short selling.

The trend in Asia is at odds with the west, where some regulators in the USA and Europe have introduced short selling restrictions of various degrees.