South Korea Plans to Fine Two Global Investment Banks for Naked Short Selling
- Local media say BNP Paribas and HSBC are the two firms
- Planned fines need to be finalized by top financial regulator
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South Korea’s financial watchdog is proposing the imposition of record fines on two global investment banks for “routinely and intentionally” engaging in naked short-selling, which is considered illegal in the nation.
The Hong Kong-based units of the two banks conducted naked short sales in several securities between 2021 and 2022, and could have reaped extra profits from them, the Financial Supervisory Service said in a statement on Sunday, without naming them.