Korea to impose up to 5-year ban on illegal short selling

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Korea will impose stricter sanctions, including a trading ban of up to five years, on individuals found to have engaged in illegal short selling and other unfair trading practices, the Financial Services Commission (FSC) said Monday. Under the revised enforcement decree of the Capital Markets Act, approved at a cabinet meeting on Monday, the new rules will take effect on April 23. The key measure restricts individuals involved in unfair trading or illegal short selling from trading financial investment products for up to five years. The length of the ban will be determined based on factors such as the market impact, the volume of short sale orders and the scale of illicit profits. Accounts suspected of being used for unfair practices may also face immediate payment suspensions for up to one year. Financial institutions that fail to comply with an FSC suspension request could be fined up to 100 million won ($70,209). The revised decree also bars individuals found guilty of such practices from serving as executives at listed firms or financial institutions. Restrictions could last up to fi
Source: www.koreatimes.co.kr
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