Wednesday February 5 2025

News Source: Global Exchanges

Focus: Stock Exchange Regulation

Type: General

Country: Korean Republic

Link: https://tinyurl.com/26ur76d9




On 3rd February 2025, the Financial Services Commission (FSC) issued a preliminary notice of rule changes regarding the Enforcement Decree and Enforcement Rules of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate regulations on financial investment businesses and the issuance and disclosure of securities.

The rule changes being proposed address the following.

  1. there will be legal grounds established for fractional investment platforms issuing beneficiary certificates and securities lending intermediary platforms (both currently operate under the regulatory sandbox program).
  2. trading exchange traded funds (ETFs) and exchange traded notes (ETNs) will be made possible via alternative trading system (ATS).
  3. IPO bookrunners will be required to conduct due diligence and prohibited from accepting compensation outside the confines of the contract.

Other rule changes include the following—making backdoor listing (where a larger sized non-listed firm determined by corporate value merges with a smaller sized listed firm) subject to listing review, allowing more types of foreign currency-denominated bonds (supranational bonds and Korean paper) to be included in the foreign currency repurchase agreements (repos) offered to investors, and raising the limit on retail investors’ over-the-counter (OTC) bond transactions in small scale, which are eligible for same-day transaction settlement (T+0), to KRW10 billion from KRW5 billion currently.

Click on the above link for further information