Tougher penalties come into force for naked short selling
Choi Jae-hee, 06 April 2021
Investors engaged in naked short selling will be fined up to 100 percent of their order amount, the nation’s top financial regulator said Tuesday.
According to the policymaking Financial Services Commission, the revised Capital Markets Act, which imposes tougher penalties for naked short selling, has taken effect on the same day.
Short selling is a trading tactic where investors immediately sell borrowed stocks on a bet that share prices will fall, allowing them to later repurchase stocks and return them to the lender. Some investors sell stocks without borrowing, known as “naked” short selling, which is currently illegal in the local capital market. Continue reading “Article: Tougher penalties come into force for naked short selling”
