The Financial Supervisory Service (FSS) discovered violations of the rules on short selling by seven more global investment banks, on top of BNP Paribas and HSBC. The two global banks have already been confirmed by the state-run financial watchdog agency to have conducted illegal short selling practices.This is according to the FSS’ interim results announced on Monday about its ongoing investigation into global banks’ illegal short selling practices.The FSS said that the aggregate amount of illegal short selling done by the nine global banks, including BNP Paribas and HSBC, is estimated to be around 211.2 billion won ($155 million), involving a total of 164 stocks listed on the Korean market.Excluding the two identified banks which had been connected to 55.6 billion won worth of illegal short selling, the seven other banks have been discovered to have been involved in illegal short selling practices totaling 155.6 billion won.The FSS explained that it has so far looked into 14 global investment banks over their short selling trading records since May 2021.
“Out of the total 14 global investment banks, the FSS has completed taking corrective actions against the two (BNP Paribas and HSBC), as of Dec. 22 last year. Regarding seven other companies, illegal short selling suspicions have been found, while investigations are ongoing for the remaining five banks,” the FSS said on Monday.The financial watchdog agency explained that the 14 global banks account for over 90 percent of the total trading volume of foreign investors, comprising a significant portion of the country’s foreign short selling transactions. The FSS established a dedicated team in June 2022 to closely monitor and conduct intensive investigations into short selling violations, aiming to eradicate rampant illegal short selling practices in the Korean stock market.Following the confirmation of significant illegal short selling by the two global investment banks late last year, the FSS has initiated a comprehensive investigation into the 14 global investment banks.The FSS will initiate sanction procedures, once additional investigations are completed for the seven global investment banks where violations have been confirmed so far. At the same time, the agency is aiming to swiftly conclude the ongoing investigations for the remaining five.Meanwhile, the FSS plans to hold meetings with major global investment banks in Hong Kong this month to brief them over Korea’s short selling system as well as its improved computerized systems. The agency also aims to listen to concerns from foreign investors and gather opinons for further advancement of the Korean capital market 카지노사이트킹 system.