The Istanbul Stock Exchange raised the minimum cash or equity required to initiate a short-sale to 70 percent from 50 percent and said any violations could be met with "severe penalties," according to an e-mailed statement today. In a short sale, an investor borrows a security and sells it, expecting to profit from a decline by repurchasing it later at a lower price.
Regulators are investigating whether short sellers manipulated share prices after the ISE National 100 Index lost 19 percent this month. South Korea began a three-month ban on short sales yesterday and Greece started a two-month prohibition Aug. 9, while Italy increased disclosure rules for short sales in July.
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