Regulatory Alerts2024-09-26 | 83141Revisions to FSCMA Expected to Bring About Major Improvements to Short Sale Regulations
The Financial Services Commission announced that the National Assembly passed revisions to the Financial Investment Services and Capital Markets Act to formally legalize and regulate short sales, replacing the previous ban. The revised law mandates that institutional and corporate investors establish electronic processing systems and internal controls, while imposing stricter limits on stock repayment periods and enhancing penalties for illegal activities. These measures aim to prevent naked short selling, ensure fair market conditions for all investors, and strengthen sanctions against unfair trading practices effective from March 2025.
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