They were the first cases fined under the revised Capital
Markets Act that came in effect in April 2021 and raised fines
to maximum five times of illegal profits from 100 million won,
according to the FSC.
Naked short selling of stocks - in which an investor short
sells shares without first borrowing them or determining they
can be borrowed - is banned by the Capital Markets Act in South
Korea.
The Commission did not name the firms in the statement.
(Reporting by Jihoon Lee)
SEOUL, March 8 (Reuters) - South Korea's financial
regulator fined two firms for naked short selling in the local
stock market, for the first time under the new law of heavier
penalties.
The Financial Services Commission (FSC) said that the firms
were each fined 2.18 billion won and 3.87 billion won for their
illegal trading in 2021, in a statement released on Wednesday.
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