No, SEBI has not issued any blanket ban on short selling in the non‑derivative (cash) segment.

Key regulatory position:

1. Short selling is permitted, but only in a “covered” manner

- SEBI allows covered short selling by all classes of investors (institutional and retail).

- Naked short selling is not permitted (you cannot sell shares short without ensuring ability to deliver/borrow if required).

2. Retail in cash segment (non-derivative stocks)

- Intraday short selling in the cash segment is allowed as per normal brokerage risk rules, provided positions are squared off or appropriately funded/margined as per exchange/broker norms.

- If you do not square off/arrange delivery, the position goes into auction/penalty mechanisms, but this is not the same as a SEBI ban.

3. Temporary restrictions can be imposed

- Exchanges or SEBI can temporarily restrict short selling or increase margins in specific securities or segments in extreme volatility or for surveillance reasons, but those are security/period specific, not a permanent ban on all non-derivative short selling.

4. Stock Lending and Borrowing (SLB)

- For genuine delivery-based short selling, SEBI’s framework allows borrowing of stocks through the SLB mechanism, so that short positions are properly covered.

Conclusion:

Short selling in the non‑derivative (cash) segment is allowed under SEBI’s covered short selling framework. There is no complete ban, but naked short selling is prohibited and brokers/exchanges may impose their own operational restrictions, higher margins or temporary curbs.

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