Naked short selling or naked shorting is an illegal stock trading practice, in which investors sell a particular stock which they do not possess and can not borrow. In capital markets, this practice is called Fail to Deliver (FTD), since the seller fails to deliver the shares to the buyer. In ordinary short selling, an investor borrows shares, which he believes overvalued, and then sells in open market. If you do so, you may make profits by buying the same shares once the share price declines after sometime. Normally, overvalued stocks fall and recover after some time. In a naked short selling, the sellers do not borrow stocks and do not intend to borrow the shares to make the delivery within the required three-days time period. The sellers fail to deliver the particular stock which they are supposed to deliver, resulting in