I'm trying to short sell for the first time and when I asked my broker he says that only Intraday short selling is allowed.That really didn't make any sense as the articles I read said I can short sell a stock for longer periods. The broker said if I want to do it for a month or so I need to do that in F&O. Can anyone suggest me how to short a stock for a long time?
In India the Short is what is called in other markets call as "Naked Short" [I think I got the right term]. It means that you can only short sell intra day and by the end of the day you have to buy back the shares [at whatever price, if you don't; the exchange will do it by force the next day].
In other markets the Intra day shorts are not allowed and one can short for several days by borrowing shares from someone else [arranged by broker]
India has a futures market, so you can sell/buy something today with the execution date of one month. This is typically a fixed day of the month [I think last Thursday]
In India the only way to short a stock is using F&O which I personally find to be sufficient for any shorting needs. However, Futures can be generally sold for upto 3 months but options have more choices which are even upto 5 years you can buy a put of a longer duration and when you want to do buy-back, you can directly sell the same option by squaring-off the trade before expiry date. You generally get approximately the same profit as shorting but you get to limit your risk.
In India, as suggested above, short/long position can be taken either in F&O or Spot market. The F&O segment short/long can be kept open for appx. 3 months by taking position on the far contract.
In intra-day/Spot market, usually the position has to be squared at the end of day or the broker will square it during expiry (forcibly). However, having said that, it is a broker specific feature, as per National Stock Exchange (NSE) or Bombay Stock Exchange (BSE) any transaction has to be settled at the end of T+2 days (T being the trade day).
Some brokers allow intra-day positions to be open for T+1 or T+2 days as long as the margin is provided. This is a broker specific discretion as the actual settlement is on T+2 (or in some cases as the exchange specifies).
So, in general, to short a stock for a longer time, F&O segment should be used.