Dubai's main bourse said on Sunday short selling was not in keeping with regulatory rules and urged all parties operating in the market to abide by regulations.

"The market would also like to point out that what is being circulated that some international financial institutions are conducting short selling transactions, is not in keeping with regulatory rules," the Dubai Financial Market said in a statement.

Regulators around the world had introduced the curbs amid concerns that short sellers were crushing the stocks of major financial names and driving global stock markets down.

Short selling involves an investor selling stock in anticipation that the price will fall -- in which case the investor can buy back the stock at a lower price. The practice has been blamed for contributing to the demise of Lehman Brothers and threatening to bring down Morgan Stanley and Goldman Sachs.

DFM urged "all parties to abide with established regulator rules and refrain from practices which are not yet codified in local markets." - Reuters