On 5 June 2025, the Ontario Securities Commission (OSC) released proposed amendments to Ontario Securities Commission Rule 48-501 (Rule 48-501) and consequential changes to the Companion Policy to Rule 48-501 (48-501CP) for a 90 day comment period.

• proposed amendments prohibit any person or company who made a short sale of a security prior to pricing from buying securities in the offering unless an exemption is available. The period commences five business days prior to pricing of a prospectus offering or private placement of the same class of securities sold short.
• several criteria are offered under the prohibition to purchase of securities;
• updates the definition of short sale specifically for the purposes of Rule 48-501;
• a specific focus on settlement with borrowed securities also prevents a short seller from arguing that the securities lending agreement under which the seller acquired the securities transferred title, and therefore the seller has title to the securities sold.

Timing and comments

The comment period ends on 3 September 2025.