The effects of options listing and delisting in a short-sale-constrained market: Evidence from the Indian equities markets

Pradip Banerjee, Arjun Chatrath, Rohan Christie-David and Debasish Maitra

Global Finance Journal, 2018, vol. 35, issue C, 157-169

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.

Keywords: Delisting; Relisting; Options; Short sales (search for similar items in EconPapers)
JEL-codes: G14 G28 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:35:y:2018:i:c:p:157-169

DOI: 10.1016/j.gfj.2017.10.002

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