At midnight today(thursday) a ban by the FSA(equivalent to our CMA) on shortselling in publicly listed financial counters in the London Stock Exchange will take effect. The ban remains in place till mid january 08 although it will be up for review every 30days. The American equivalent has issued tougher rules on short selling too. Requiring seller to deliver shares within 3days.
Short sellin is when i sell shares i don't own on speculation that it will fall in price. Eg Equity is at 170...and its rather very probable it will fall further to 120level...plus i don't own any. So i go to broker,put order to sell 1000 equity at 170...remember i don't have. Someone buys my shares at 170 today...I have 5days to deliver the shares..so..if within 3days the share falls as expected..i buy them..then on day 5..my 1000shares bought at 120 are delivered to the buyer of the shares i sold on day 1 at 170...the profit of 50bob i pocket. Cool don't u think? It should be introduced here! What do you think. The opposite of that is what we do. Going long..buyin on premise that share price will rise. It pays to read. This will be a reality here some day.

' I have heard of You,o Lord. Now mine eyes have seen thee!! Baal-Perazim.. The Lord of the Breakthrough!!'

we are just not mature enough for such a service at the NSE. In am market where prices respond more to social happening rather than economic fundamentals,we have some long way to go.
if it is introduced,it may be misused or even lead to exploitation.

A likely impossibility is always preferable to an unconvincing posibility.

@HI-LO...wiki-pede the topic. Read through.cut down on the suspicion.


@sober......I'm thinkin we all intend to grow in our investments and financial markets business..at some point u will be big enough to go to more developed stock markets. Am particularly itchin for th London Exchange..the least to do is learn about it.after all,If the mountain won't come to th prophet,the prophet will go to the mountain! are their skerians here who'v invested in markets where this is allowed? We'd love ur response.

' I have heard of You,o Lord. Now mine eyes have seen thee!! Baal-Perazim.. The Lord of the Breakthrough!!'

@Jammo,

In less than 48 hours,your double amuse me.....You are obviously a novice even in stocks..!

@jammo..if the other bigger,better run markets,with better internal controls etc etc deem it unwise to allow short selling,why should our chaotic NSE allow it?