Following the Government’s decision to remove the ambiguity in section 1020B of the Corporations Act around the disclosure of ‘covered’ short sales, the ASX has released a public consultation paper (pdf) inviting comments on a range of initiatives the ASX might pursue within its Rules.

If amended, the Corporations Act will require shareholders to report to their broker all selling where borrowing and/or the purchase of securities takes place in order to meet settlement obligations.

Feedback is requested by Thursday, 24 April 2008.

Articles:

Terry McCrann "Short selling should be banned"

Bryan Frith "ASIC, ASX asleep at the wheel"

Stuart Washington, Opes Prime Anatomy of a Collapse