[Alpha Biz=(Chicago) Reporter Kim Jisun] The Financial Supervisory Service will impose a total of 20 billion won in fines, 10 billion won each, on BNP Paribas and HSBC, which made naked short selling.

The committee reported that it discussed the amount of fines at the meeting on the 20th, but failed to reach a conclusion.

The FSS earlier found that BNP Paribas's Hong Kong subsidiary conducted a naked public sale worth KRW 40 billion on 101 stocks, including Kakao, from September 2021 to May last year. Hong Kong's HSBC was also found to have made naked short selling worth 16 billion won for nine stocks, including Hotel Shilla, between August and December 2021.

Borrowed short selling refers to short selling without borrowing stocks in advance. The Capital Markets Act prohibits all short selling except 'short selling using borrowed stocks' (borrowing short selling).

 

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