Short-selling in breach of Securities & Exchange Law
During the period from January 2001 until November 2001, the Branch executed short-selling of stocks by clients' order without legally required disclosure of the fact of short-selling to the stock exchanges many times because staffs misunderstood an order-system and so on. And the Branch made a short sale at a price lower than the latest published price prior to the short sale.
The conduct above was found to violate the Article 26-3 (1), the Article 26-4 (1) of the Cabinet Order (Securities & Exchange Law) and Article 162 (1) (i) of the Securities & Exchange Law, both of which regulate short-selling.
