Journal Title

Global Finance Journal

Publication Date

2-2018

Abstract

We investigate short- and long-horizon effects of 237 option listings/relistings and 140 delistings in a short-sale-constrained market-specifically, India's National Stock Exchange from 2001 to 2012, when institutional short selling was either curtailed or banned outright. We find a strong positive impact on listings/relistings, signalling a favorable market perception of the event, but a negative impact on delistings. Over long horizons volatility is higher in both listed and delisted periods, especially the latter. We also find evidence to suggest that traders migrate from stock venues to (from) option venues following a listing (delisting), especially during short-sale bans.

Author Supplied Keywords

Delisting, Relisting, Options, Short sales

Subjects

Stocks--India; Short selling (Securities)

Publication Information

© 2017 Elsevier Inc.

Link to published version: http://dx.doi.org/10.1016/j.gfj.2017.10.002

Archived version is the accepted manuscript.

DOI

10.1016/j.gfj.2017.10.002

Peer-Reviewed

Yes

Document Type

Journal Article

Available for download on Tuesday, January 14, 2020

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