SEOUL, Nov 16 – South Korea’s financial regulator said on Thursday that a ban on short selling of stocks, imposed to promote a “level playing field” for retail and intuitive investors, will remain in place until the market environment improves sufficiently.
Kim So-young, vice chairwoman of the Financial Services Commission (FSC), made the comments after a meeting with other financial authorities and lawmakers to discuss regulatory improvements, according to local media News1 and Newsis.
In a separate statement released after the meeting, the FSC said several measures were discussed to level the playing field between retail and institutional investors and prevent illegal trading.
These included relaxing the limit on retail borrowing of shares for short selling and imposing a maximum borrowing period for institutional and foreign investors, the FSC said.
Retail investors have welcomed the ban on short selling, arguing that the practice has only exacerbated price volatility by allowing big players to bet on market falls.
