SEOUL (Reuters) – South Korea’s inventory market watchdog mentioned on Sunday it discovered two Hong Kong-based funding banks had engaged in bare short-selling, which might doubtless end in report fines.
The 2 unnamed funding banks made bare short-selling transactions of a complete 40 billion gained ($29.58 million) and 16 billion gained, respectively, the Monetary Supervisory Service (FSS) mentioned in a press release.
Bare brief promoting of shares – by which an investor brief sells shares with out first borrowing them or figuring out they are often borrowed – is banned by the Capital Markets Act in South Korea.
The violations by the worldwide banks had been over lengthy intervals, for 9 months by means of Could 2022 and 5 months by means of December 2021, respectively, and anticipated to end in report quantities of fines, the FSS mentioned.
The FSS mentioned such violations, which got here in opposition to authorities’ efforts to supply a extra beneficial atmosphere for international traders, needs to be prevented from recurring and that it might additionally look into practices at different related funding banks.
($1 = 1,352.2100 gained)
(Reporting by Jihoon Lee; Enhancing by Muralikumar Anantharaman)
