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<h1>Prohibition on carry forward transactions; derivatives and short selling allowed under board-prescribed exchange frameworks, subject to securities lending conditions.</h1> Funds of a mutual fund scheme are prohibited from being used for carry forward transactions. Mutual funds may undertake derivatives transactions on a recognised stock exchange only under the framework specified by the Board. Mutual funds may also engage in short selling on a recognised stock exchange, subject to the Board-prescribed framework governing short selling and securities lending and borrowing.