Sebi's new plan could boost cash market trading
Sebi, India's market regulator, is reviewing the Securities Lending and Borrowing (SLB) system to make it easier for people to lend or borrow shares.
The aim is to boost cash market activity, help prices reflect real demand, and allow more short selling—since right now, the cash market is much smaller than the fast-moving derivatives market.
What it means for traders and investors
If you trade or invest, this could mean more action and better price fairness in the cash market.
On expiry days, derivatives trading is a massive 350 times bigger than the cash market—so Sebi's hoping these changes will shift some of that energy back to regular stock trading and give everyone more options.
Aims to deepen the market
The current SLB setup is inefficient and covers only a few stocks, which has limited participation.
By making the system simpler and opening it up to more stocks, Sebi wants to get more people involved, deepen the market, and keep prices less jumpy—all part of their bigger plan to strengthen India's markets.