On 30 March 2021, SK FSC announced that amendments to the enforcement decree of financial investment services and capital markets act (FSCMA) have been approved.
- Revision created imposition of penalty surcharges on illegal short sale activities.
- Short sellers must keep their securities lending agreements for five years, to present to authorities upon request; decree prescribes specific criteria to be maintained.
- Restricts short sellers from participating in a company’s capital increase via issuing new shares once the company has made such a plan public, except in certain cases.
- Amendments and revised FSCMA will take effect on 6 April 2021.