The Securities and Exchange Board of India (SEBI) will soon form a working group to comprehensively review the frameworks for short selling and the Securities Lending and Borrowing Mechanism (SLBM) , chairman Tuhin Kanta Pandey said on Friday.

Speaking at the CNBC-TV18 Global Leadership Summit 2025, Pandey said, “An active Securities Lending and Borrowing scheme is critical for improving price discovery and facilitating interlinkage between the cash and derivatives segments.”

The framework, introduced in 2008 and modified a few times since, “remains significantly underdeveloped as compared to other jurisdictions,” he said.

“From a borrower’s perspective, it facilitates the settlement of securities sold short, while lenders can earn a fee on their idle securities,” he said. Short sell

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