Individuals can borrow Korean stocks for the purpose of short selling for 90 days, instead of 60 days, starting in November, and can extend the loan at expiration under new incentives to bring retailers closer to the market. complex investment activity.
The Financial Services Commission (FSC) announced Thursday that individual investors will have up to 90 days to borrow stocks for the purpose of short selling from November 1.
They will also be allowed to extend the repayment term multiple times, the FSC said.
The rule revision aims to provide better access to short sale transactions for retail investors, according to the financial authority, as there have been an increasing number of amateur investors who are using the short position as an investment strategy. to take advantage of the volatility of stock prices.
The number of brokerage firms that offer stock lending service to individual investors will increase from 19 to 28 during the year.
The authority will also set up a real-time monitoring system for transactions in borrowed shares by the end of the year in order to improve trading efficiency.
Since brokerage houses allowing retailers to lend stocks fell from six to 19 as of May 3, individual investor daily short sales have jumped 41% to 11 billion won from a year earlier. . The share of retail in the turnover of short sales slightly reached 1.9%, compared to 1.2% in 2020.
The largest Korean shortage during the period was Kakao, which drew 2.1 trillion won in an overdraft account.
By Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]