New Delhi, Nov. 7 -- The Securities and Exchange Board of India (Sebi) will soon review the short-selling, and securities lending and borrowing mechanism (SLBM) frameworks, marking the first overhaul in nearly two decades.

"This (SLBM and short-selling) remains significantly underdeveloped as compared to other jurisdictions," said Sebi chief Tuhin Kanta Pandey at the CNBC Global Leadership Summit on Friday. "We will soon form a working group to comprehensively review short-selling and the SLBM frameworks."

Sebi aims to better interlink the cash equities and derivatives markets, an objective that regulators worldwide have pursued to ensure efficient price discovery and reduce settlement stress.

An active SLBM serves both sides of the tr...