August 18, 2009
Limiting the shorts sales will be positive for the Markets...but annihilate and forbid severely the naked shorts sales would be a lot more proactive.
Enforcing existing rules and showing to the Markets that the Law is applied, would be a great sign of confidence for investors.
Here is an unfortunately famous exemple for a naked shorts sales fraud:a company, traded on OTCBB Nasdaq,Bancorp International Group (SYMBOL: BCIT)is halted since 4 years ,because a huge NSS position,estimate around 1 Billion shares Why not applying rules, and enforce the Rule 203 ?Why shareholders are hostages since 4 years ?When a fraud is proved, Law must be applied.
Time to enforce rules, without this, Markets will lost confidence and investors will go away.