[Asia Economy Reporter Lee Jung-yoon] A plan is being promoted to disclose individuals or corporations that violate regulations in order to prevent unfair trading in the capital market.
On the 1st, the Financial Services Commission announced this and stated that it will be applied first to those subject to sanctions at the Securities and Futures Commission meetings starting this month.
Unfair trading in the capital market subject to disclosure includes violations of disclosure obligations, violations of prohibitions on market order disruption, and violations of short-selling regulations.
Recently, as demands for securing the effectiveness of sanctions against unfair trading such as illegal short selling have increased, the scope of disclosure of sanctions, including the disclosure of those subject to measures, will be expanded.
Accordingly, the financial authorities plan to disclose those subject to fines and penalties concluded by their disposition. In addition, foreign financial investment firms suspected to be major forces behind illegal short selling will have the details of sanctions and the names of the corporations subject to measures disclosed if they violate regulations such as short selling.
However, in cases of unfair trading in the capital market subject to criminal punishment, such as violations of prohibitions on price manipulation, the names of those subject to measures and the names of the securities will not be disclosed as before, considering the impact on future investigations and trials. Cases where criminal charges and notifications accompany the imposition of fines or penalties will also remain undisclosed in accordance with unfair trading subject to criminal punishment.
A Financial Services Commission official said, "It is expected that disclosing those subject to measures for violations of short-selling regulations will also have the effect of reducing incentives for illegal activities in the capital market."
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