Meritz Securities has received approval for its issuing notes business from the Securities and Futures Commission, a key regulatory body. If final approval is granted at the Financial Services Commission's regular meeting on the 23rd, the firm will become the ninth issuer of notes in South Korea.
According to the financial investment industry on the 18th, the Securities and Futures Commission, under the Financial Services Commission, reviewed and approved Meritz Securities' designation as a comprehensive financial investment business operator and its application for short-term financial operations (issuing notes) during its regular meeting on the 16th. The final decision will be made at the Financial Services Commission's regular meeting on the 23rd.
Once the Financial Services Commission completes its approval, Meritz Securities will join the ranks of other major firms, including Korea Investment & Securities, Mirae Asset Securities, NH Investment & Securities, KB Securities, Kiwoom Securities, Hana Securities, Shinhan Investment Corp., and Samsung Securities, as the ninth issuer of notes.
Issuing notes are financial products with a maturity of less than one year, issued by comprehensive financial investment firms with more than 4 trillion won in equity based on their own credit. Approved securities firms can raise funds through issuing notes up to 200% of their equity, making it a key funding tool for large investment banks.
As of the end of the first half of this year, Meritz Securities reported a separate equity of approximately 8.35 trillion won. If the issuing notes limit is simply applied at 200% of its equity, the firm could secure a funding capacity of up to 16.7 trillion won.
Meritz Securities applied for approval to operate the issuing notes business in July of last year, but the review process faced delays due to investigations into allegations of unfair trading related to the issuance of convertible bonds for Iwha Electric and inspections of the firm's branch operations by the Financial Supervisory Service.
* This article has been translated by AI.
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