The regulator has decided to address the issue of short selling at multiple levels. They have reduced the market wide position limits (MWPL) for most stocks by half so building of naked positions is automatically curbed. Also, for every stock, naked short positions will only be permitted to the extent of Rs.500 crore with normal margin. Once that limit is crossed, then the margin will be doubled. In addition, the margins on intraday selling of stocks have also been increased to reduce naked selling.