The Securities and Exchange Commission is expected to propose a rule change that would make it more difficult for hedge funds and others to engage in short-selling, disposing of shares they do not own in the hope of buying them back at a profit after they fall in price.

The SEC said it will consider today whether to propose amendments to Regulation SHO, which concerns short sales. It said it wanted to reduce the frequency of stock not being delivered after it is sold. If, as expected, it proposes changes to the rules, it will put the proposals out for public comment for at least 30 days.