[Breaking] Financial Services Commission Decides to Ban Short Selling for 6 Months

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] The Financial Services Commission announced on the 13th that short selling will be banned for all listed stocks on the KOSPI, KOSDAQ, and KONEX markets for six months starting from the 16th.

On the same day, the Financial Services Commission held an emergency meeting in the afternoon and resolved to implement these market stabilization measures.

According to the Capital Markets Act and its enforcement decree, if there is a concern that the stability of the securities market and fair price formation may be harmed, the Korea Exchange can restrict short selling with the approval of the Financial Services Commission.

Additionally, the Financial Services Commission decided to expand the limit on listed companies' treasury stock acquisitions during the same period. This involves relaxing the daily purchase order quantity limit for treasury stocks by listed companies.

Furthermore, to suppress forced sales of securities companies' excessive credit loan collateral stocks, the obligation to maintain the credit loan collateral ratio will be exempted during the same period.

This content was produced with the assistance of AI translation services.