A new version of the Securities and Futures Commission ("SFC") Guidance Note for short selling reporting and stock lending record keeping requirements (the "Guidance Note") was issued on 28 November 2002. This consolidates and replaces an earlier version of the Guidance Note and the addendum thereto, dated August 2000 and June 2002 respectively.
The revised version of the Guidance Note consolidates the earlier publications on the same subject and sets out requirements relating to the creation of an audit trail by securities intermediaries for the short selling and stock lending activities they have carried out.
In addition, the revised Guidance Note takes into account the recently enacted Securities (Miscellaneous)(Amendment) Rules which, among other things, introduced new exemptions to the prohibition against uncovered (or "naked") short selling of securities under ss.80 and 80B of the Securities Ordinance.
