“But as long as the market has the ability to view stocks from both sides (long and short), that’s the main thing.”

Richard Gilbert, chief executive of IFSA, which had also been critical of the extent of the ban, said the decision was overdue but welcome.

Short sellers had invariably predicted stock prices and you could not deny that those managers had skill in working out the value of a company, he said.

“It’s a good result and a sensible result.”