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The headquarters of NH Investment & Securities in Seoul. (Photo: NH Investment & Securities) |
[Alpha Biz= Paul Lee] NH Investment & Securities announced on March 3 that it will temporarily suspend new margin trading loans starting March 5 after reaching its regulatory credit extension limit.
According to the brokerage, new purchases through margin trading loans will be halted until further notice. However, short-selling through securities lending (stock borrowing for short sales) will remain available.
The company said the move is unavoidable in order to comply with credit extension limits under the Capital Markets Act.
Under Korean regulations, a comprehensive financial investment business entity is prohibited from extending credit in excess of 100% of its equity capital. NH Investment & Securities stated that the suspension is necessary to remain within the statutory ceiling.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
