CMB Imposes 2% and 4% Limits on Off-Exchange Share Sales

The Capital Markets Board (CMB) has introduced new regulations regarding off-exchange share sales by shareholders in publicly held companies. According to the announcement, depending on the actual free float ratio, shareholders' off-exchange share sales within a 12-month period will be limited to 2% and 4%. This step aims to maintain supply-demand balance in the equity market and ensure price stability. The CMB's decision particularly concerns block sales by major shareholders. With the new regulation, the amount of shares that shareholders can sell off-exchange within a specified period will be restricted by these limits, which are determined based on the company's actual free float ratio. This is significant for protecting small investors and preventing market manipulation. Experts note that such regulations may affect market liquidity but could contribute to healthier price formation in the long run. The CMB's decision aims to increase transparency in off-exchange transactions and establish investor confidence. The details and scope of the new implementation will be clarified in a communiqué to be published by the CMB. This is not investment advice.