It is known that the Financial Services Commission will hold an interim financial committee meeting on the afternoon of the 3rd to decide whether to extend the ban on short selling.
According to the financial sector, the Financial Services Commission is expected to announce the decision on short selling after the end of the market.
An official said, “The announcement of the resolution is expected to be made after the market closes to minimize market impact.”
The Financial Services Commission temporarily banned short selling of all listed stocks until March 15th.
The Financial Services Commission voted on a market action banning short selling for six months after the stock price plummeted due to the new coronavirus infection (Corona 19) in March last year.
Since then, taking into account the situation where the Corona 19 incident has not ended, the measures have been extended for another 6 months.
Initially, the Financial Services Commission seemed to officially resumption, stating that “this temporary ban is scheduled to end on March 15”, but said “nothing has been decided” as the backlash from politicians and individual investors increased. He also showed him retreating behind his feet.
Finance Commissioner Eun Seong-soo said at a briefing on the financial committee’s work plan on the 19th of last month, “I hope you will wait a little longer for the final decision.”
The Financial Services Commission is a consensus-based administrative agency composed of the chairman and vice-chairman of the Financial Services Commission, standing members, and non-standing members.
The Vice Minister of Strategy and Finance, the President of the Financial Supervisory Service, the President of the Korea Deposit Insurance Corporation, and the Vice President of the Bank of Korea will participate as an ex officio
It is possible that the Financial Services Commission will also announce a proposal to improve the system related to short selling.
From April 6, the revised bill of the Capital Markets Act will be implemented with the content of strengthening penalties for illegal short selling without borrowing.
The main goal is to raise the level of punishment under the Capital Markets Act so that imprisonment or fines and fines are imposed for only fines.
The Financial Services Commission is also pushing ahead with measures to increase personal accessibility to short selling, such as developing an integrated system for individual loans.
/yunhap news
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