The Supreme Court judgement records a statement made by Solicitor General Tushar Mehta that the Union government and the Securities and Exchange Board of India (SEBI) will take measures to regulate short selling.
A Bench led by Chief Justice of India D.Y. Chandrachud set down in writing the Solicitor General’s statement in its judgment in the case on Hindenburg Research’s allegations against the Adani group.
The judgment explained that “short selling is a sale of securities which the seller does not own but borrows from another entity, with the hope of repurchasing them at a later date with a lower price, thus, attempting to profit from an anticipated decline in the price of the securities”.
