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S Korea to bring retail short-selling rules in line with institutions

SEOUL :South Korea’s financial regulator said on Thursday authorities plan to loosen stock short-selling rules for retail investors, while tightening rules for institutional and foreign investors, to promote a “level playing field” in the market.

President Yoon Suk Yeol’s government introduced the controversial ban on short selling in the stock market this month.

The Financial Services Commission (FSC) said in a statement it would lower the ratio of cash required as collateral for retail investors to borrow stocks to 105 per cent, down from the current 120 per cent, to match the ratio for institutional investors.

For institutional investors, a new cap of a maximum 90 days will be imposed on borrowing of stocks for short selling, in line with retail investors, according to the statement.

The FSC announced the measures, along with rules to prevent illegal trades, after a meeting with…

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