이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
Korean stock exchange further toughens short selling regulation
- Collected
- 2017.02.10
- Distributed
- 2017.02.13
- Source
- Go Direct
The KRX announced on Wednesday that starting March 27, stocks with sudden and abnormal increase in short-sale transactions will be banned from further short-selling on the following day in the Korean bourse. It warns that shares with abnormal swings from short-selling would be classified as “overheated stocks” after the closing of the market, and prevented from such trade on the following day.
Restrictions on those who violate its short-selling regulations will also be tightened. Those that broke the rules would be able to return to short-selling market only upon presenting both loan agreement and certificate of the stock for short-sale.
The country’s financial regulator Financial Services Commission (FSC) has introduced a series of measures to prevent market volatility caused by massive short selling of some market heavyweights by institutional investors and enhance monitoring on heavily speculative trade.
The measures came after retail investors of Hanmi Pharmaceutical Co. suffered heavy losses due to massive short selling before the company disclosed termination of a contract with Boehringer Ingelheim.
By Jung Woo-sung
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]