Thai stock exchange investigates potential naked short selling offences

Picture courtesy of Bangkok Post

A specialised committee has been established by the Stock Exchange of Thailand (SET), designed to delve into the issue of naked short selling. The team will comprise representatives from the Korea Exchange and Nasdaq stock exchange in the US, brought in to aid Thai regulators in their investigation into potential offences.

The committee’s work is slated to commence imminently, as the SET gears up to scrutinise short selling transactions from the previous quarter. Brokers are being called upon to present evidence demonstrating that their clients genuinely borrowed stocks from custodians. A 15-day deadline has been set for the submission of this evidence.

Brokers who fail to provide adequate evidence or are discovered to have breached regulations in concert with a client could be subjected to disciplinary action. Furthermore,…