Popular IPO 'Duplicate Subscription' May Be Banned from Second Half of the Year... Legislative Notice Expected as Early as This Month

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] From the second half of this year, it is expected that multiple subscription applications for popular public offerings using accounts from various securities firms will no longer be allowed.

According to financial authorities on the 10th, the Financial Services Commission plans to announce a legislative notice within this month at the earliest, regarding the enforcement decree of the Capital Markets Act that will allow securities firms to provide general subscriber information to Korea Securities Finance Corporation.

Currently, if there are multiple securities firms managing the subscription for a public offering, investors can use accounts from all these securities firms to submit multiple subscription applications. For example, the subscription for SK Bioscience, which set a record for the largest subscription deposit on this day, allowed participation through accounts at six managing securities firms.

The Financial Services Commission has been promoting a ban on multiple subscriptions to prevent the concentration of public offerings and to stop the structure where benefits go to high-net-worth individuals. The plan is to collect subscriber information from each securities firm in one place to filter out duplicate subscriptions. Korea Securities Finance Corporation is also working with securities firms to build a related system.

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