The problem of Naked Short Selling is still being talked about a lot in the Thai stock market. Many investors are questioning whether there is really a Naked Short or not, while the Stock Exchange of Thailand has come out to quell the news and say that an investigation has been done and “no abnormalities” have been found.
As for South Korea also faced this problem, but recently the South Korean government has ordered a fine of more than 260 billion baht to two world-class financial institutions because an investigation found Naked Short Selling
Bloomberg reports that the South Korean Financial Supervisory Service (FSS) has proposed that the Securities and Futures Commission, an agency under it,
Ordered a fine of 10 billion won (260 billion baht) against two major global banks, HSBC Holdings and BNP Paribas.
on the basis of violating capital market laws Make a short sale, Naked Short Selling type, which is a short sale. without having borrowed shares beforehand On the day of the sales order This puts the buyer at risk of not receiving the shares on the delivery date. Resulting in distortion of stock prices. Create risks to the overall market
On December 20, 2023, a five-member Financial Services Commission, led by Kim So-young, Vice Chairman of the Financial Services Commission (FSC), discussed the fine but was unable to find a solution. Conclusion The fine may be changed at the next meeting. that is expected to happen today
The move comes after the FSC and FSS fined three global hedge funds a combined total of more than 2 billion won (53 million baht) for violating capital market laws. Do a short sale and unfair trade This is in line with a new South Korean law that announced a full ban on short selling until the end of June 2024 last November due to the discovery of a large number of illegal naked short transactions.
