Short selling by registered foreign institutional investors allowed subject to regulatory conditions, with retrospective effect. The amendment permits a registered Foreign Institutional Investor to undertake short selling and to engage in lending and borrowing of securities, subject to conditions stipulated by the Reserve Bank of India and the Securities and Exchange Board of India. The regulation is titled as an amendment to the principal FEMA transfer/issue of security regulations and is deemed to have come into force retrospectively from December 31, 2007, with a clarification that no person will be adversely affected.