KOREAN REPUBLIC: FSC to lift ban on Korean Republic short selling of financial stocks in the Korean Republic tomorrow, 14 November

Wednesday November 13 2013

The Financial Services Commission of the Korean Republic has announced that effective tomorrow, 14th November, it will lift its ban on covered Korean short selling of Korean Republic financial stocks, in place since 1 October 2008. 

Naked short selling will remain prohibited.

The FSC also intends to make changes to the current short position reporting rules, which require notification of positions that exceed 0.01 % of the issued share capital of a listed company. The amendments are anticipated in the first half of 2014. Fines for breach of the reporting rules will be enshrined in legislation, with short selling volumes in each stock published on a daily basis on the Korea Exchange website. Investors whose short-selling position in a stock exceeds 0.5% of total shares wll be required  to disclose their position on the KRX website. Short positions which do not exceed KRW 100 million will be exempted from the disclosure requirement.

Click on the above link for the FSC press release.