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India considers allowing portfolio managers to short stocks unhedged
The proposal would be a first for India’s securities regulator, expanding professional portfolio managers’ ability to take short exposure through equity derivatives.
India’s securities regulator is considering allowing professional portfolio managers to take unhedged short positions in equity derivatives for the first time, according to a report cited by Hedgeweek.
If adopted, the change could give money managers more flexibility to seek returns even when share prices fall, by broadening what kinds of short strategies they can use.
The discussion centers on equity derivatives, where the regulator would allow short exposure without requiring the positions to be hedged, potentially changing how managers structure trades.