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ASIC expands short selling relief for convertible securities

ASIC has announced it has expanded its existing relief from the covered short selling ban for people who hold a convertible security (eg a convertible bond) to hedge their exposure to the underlying share.

The change means that people can short sell to hedge exposure through a fixed conversion price or ratio convertible security. The current relief is limited to convertible securities where the number of shares issued on conversion is referable to the volume weighted average price (VWAP) of the share over a period.

For more information, see ASIC’s media release:www.asic.gov.au