S Korea urges foreign firms to guard against illegal short-selling in share market
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SEOUL : South Korea's financial market watchdog on Thursday urged foreign firms trading on the country's stock market to strengthen internal controls to prevent illegal naked short-selling.
The Financial Supervisory service (FSS) conveyed the message in a meeting with compliance officers from 23 foreign investment banks.
Naked short-selling of stocks - in which an investor short sells shares without first borrowing them or determining they can be borrowed - is banned by the Capital Markets Act in South Korea.