ASIC ban on short selling lifted
19 November 2008
From opening of trading on 19 November 2008, ASIC’s ban on short selling of non-financial securities has been lifted, with the ban on covered short sales in financial securities remaining in place.
Key details
- Covered short sales of non-financial securities will be permitted, with the ban on covered short selling of financial securities continuing until 27 January 2009
- Existing exemptions for covered short selling, for example those relating to hedging and arbitrage transactions, will continue in relation to financials
- The facilitation of the sale of securities being recalled from a stock-lending program (whether or not they are financials) will also continue
- A reporting and disclosure framework for short sales has been agreed with the Australian Securities Exchange.
Full details are available in ASIC’s media release.
New reporting and disclosure framework
The Perpetual funds where the new reporting and disclosure framework applies are:
| Fund | How available? |
| Perpetual’s SHARE-PLUS Long-Short Fund | Perpetual WealthFocus Investment Funds, Super Plan & Pension Plan |
| Perpetual’s Wholesale SHARE-PLUS Long-Short Fund |
Perpetual’s Wholesale Funds |
| Perpetual’s QI Long Short Fund | Institutional investors only |
| Perpetual’s QI Market Neutral Fund | Institutional investors only |
Our view of short selling remains the same
We view ASIC's commitment to greater disclosure and the certainty provided positively and will be in a position to comply with the new disclosure requirements.
We will keep you informed of any further changes.
