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short-selling: Top broker calls for reviving short-selling to aid price discovery in non-F&O stocks

MUMBAI: Nikhil Kamath, the co-founder of stock broking firm Zerodha and Chief investment Officer of alternative investment fund True Beacon, believes re-establishing short-selling in a meaningful way in India can nurture instead of hinder price discovery in the stock market. “Short selling will help price discovery, particularly in securities which don’t have derivatives,” Kamath told ETMarkets.com in an interview. In India, short-selling as seen in the US and other parts of the world is banned. The horrific episodes of the Harshad Mehta and Ketan Parekh scams in early 1990s and 2000s, respectively, have convinced the market regulator forever that it is better off without it.

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