South Korea is making various efforts this year, including regulatory reforms, to make its local stock market more accessible for foreigners, in a bid to attract more inflows to the market. ($1 = 1,257.4400 won) (Reporting by Jihoon Lee; Editing by Susan Fenton)
SEOUL, Feb 9 (Reuters) - South Korea's financial
regulator said on Thursday it imposed fines on five foreign
firms in December for violation of naked short-selling rules in
the local stock market.
Naked short-selling of stocks -- whereby an investor sells
shares it doesn't own without borrowing them first, agreeing to
deliver them at a fixed time -- is banned by the Capital Markets
Act in South Korea.
Bellevue Asset Management AG, Credit Suisse International , Lingohr & Partners Asset Management GmbH and MEAG
Hongkong Limited were each imposed a fine of 45 million won
($35,787) for their illegal trading in 2021, while Invesco
Capital Management LLC was fined 75 million won, according to
the statement.
The five firms did not immediately respond to requests for
comment.
It was the first time the Financial Services Commission
has publicly named firms that have been fined for breaking
market rules. The regulator announced in December that it would
from now on name firms that are subject to a penalty, citing a
need for more effective regulatory action against disruptive
market behaviour.
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