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Paperless securities to accelerate innovation in capital markets: regulator

All Headlines 10:38 September 16, 2019

SEOUL, Sept. 16 (Yonhap) -- The pace of innovation in capital markets is expected to gather pace as the nation's stock exchange goes paperless, the head of the financial regulator said Monday.

Financial Services Commission (FSC) Chairman Eun Sung-soo made the remarks earlier in the day as the stock exchange formally introduced an electronic securities system, under which no listed stocks and bonds exist in paper form.

Under the new system, securities certificates of listed stocks and bonds are required to be recorded on an electronic register.

"(The new system) will make it easier for people to issue and trade securities and, based on such information, innovation of fintech will be expanded," Eun said.

This file photo shows FSC Chairman Eun Sung-soo. (Yonhap)

"Because the new system allows investors to acquire, transfer and exercise subsequent rights electronically, innovation will be accelerated," he added.

The introduction of an electronic securities system is expected to save costs in issuing securities, reduce risks in securities circulation and enhance transparency in corporate governance and securities transactions, the FSC said.

Nearly all securities, except for commercial papers and investment contract securities, will be subject to the paperless system, it said.

The Korea Securities Depository Corp. will be in charge of monitoring the process of electronic issuance and circulation, the FSC said.


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