In indian markets, shorting can be done in 2 ways.
1) Cash- Shorting in cash can only be done on a intraday basis as the stocks bought and sold are settled on a daily basis.
2) F&O segment - Participants can sell stock
futures to
short a stock or buy a
Put Option to
short a stock. Generally, these are used as
hedging mechanisms, but lot of people buy naked
shorts with an intention of making quick profits.
-MarketGuy
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