Friday, October 21 2005 12:25 Hrs (IST) - World Time -

Chennai: Short selling by institutions will be allowed by this calendar year, Security and Exchange Board of India (SEBI) Chairman M Damodaran said today (Oct 21, 2005).

Currently only individuals are allowed short selling in the security market, whereas in all other international market institutions were allowed, Damodaran told reporters on the sidelines of a seminar in Chennai.

'A dichotomy exists in the Indian market. We will remove that', he said.

In a move to tighten the Mutual fund regime, the MF distributors will be brought under the SEBI ambit, Damodaran said.

The timeline for companies to raise money through Initial Public Offering (IPO) will be reduced in line with the international market but without diluting the regulations, he said.