Why can't we have a Short-Only Fund in India?

Asks Deepak Shenoy, CEO, Moneyoga:

Excerpts: So I'm going to start a Short Only Strategy - I'll call it S.O.S. (Short Only Strategy) since this is not a real fund.

Deepak Shenoy's Fundas:

• Short stocks, long puts or short calls.
• It will only involve indices or stocks that have futures on them
• The nominal amount will be Rs. 50 lakhs. It's funny money.
• The closing price of the future will be taken. Nothing intraday.
• I will put this stuff in a shared document that we can all see and learn.

Read the full post and disclaimers!