A task force led by the Korea Exchange is considering suspending trading of Samsung Electronics shares for three days following its stock split, according to industry sources on March 5.
The bourse operator, along other financial market regulators including the Korea Securities Depository, reportedly reached the decision to cut down suspension from the current 15 days to three. An official announcement is expected on March 7. RELATED:
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The Korea Exchange formed the taskforce after Samsung announced in January that it would pursue a 50:1 stock split to make its stocks more accessible.
Authorities said they would revise existing regulations to reduce the fallout, as Samsung Electronics is Korea’s largest company in terms of market cap. They added that regulators had been looking to minimize related red tape even before Samsung announced the split.
The suspension is expected to commence on April 25, once shareholders approve the notion on March 23.
By Lee Ji-yoon (firstname.lastname@example.org