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New Delhi, Jan. 2 Institutional investors including foreign institutional investors (FIIs) and their sub-accounts can undertake short-selling, lending and borrowing of Indian securities from February 1, the capital market regulator chief, Mr M. Damodaran, has said.

The Reserve Bank of India on Tuesday gave its nod for FIIs to undertake short selling. “Funds can do it (short sell) from February 1,” the SEBI Chairman, Mr Damodaran, told reporters on the sidelines of an ICSI event on corporate governance.

It would be allowed for all institutional investors, both FIIs and domestic institutions, Mr Damodaran said. Retail investors are already allowed to undertake short-selling of securities.

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