The South Korean financial regulator said on Sunday that it was considering imposing the heftiest fines on two Hong Kong-based investment banks for their involvement in naked short-selling. Naked short-selling of stocks—in which investors short-sell shares without first securing a borrowing arrangement or determining they can be borrowed—is prohibited by the Capital Markets Act in South Korea. South Korea’s Financial Supervisory Service (FSS) did not disclose the names of the banks, which it said were involved in naked short-selling transactions of 40 billion won ($29 million) and 16 billion won ($11.8 million), respectively. FSS Deputy Governor Kim Jung-tae said the financial regulator deems it “intentional illegal short selling,” especially considering that the banks were involved in such illegal conduct for “a long period of time.”...Read more https://www.theepochtimes.com/world/south-korea-to-impose-fines-on-2-hong-kong-banks-for-naked-short-selling-5510763