ASIC extends short-selling ban

THE corporations watchdog has extended a ban on covered short selling by a further 28 days because market conditions continue to be difficult. The Australian Securities and Investments Commission imposed the ban on September 21, as financial markets were racked by volatility.

Following a review of its action, ASIC has now decided to maintain a ban on covered short sales of non-financial stocks until November 18.

ASIC expects to lift that ban the next day.

However, a ban on covered short selling of financial stocks will continue until 27 January, 2009, as the UK maintains a similar ban.



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