Meritz Securities' Issuance Bill Business License Passes Securities and Futures Commission, Heads to Financial Services Commission on the 23rd

The application for Meritz Securities' issuance bill (short-term note) business license has passed the Securities and Futures Commission, which is under the Financial Services Commission.

According to financial authorities on September 18, the Securities and Futures Commission, at a regular meeting held on September 16, approved Meritz Securities' designation as a comprehensive financial investment business entity and its application for short-term financial work (issuance bill) licensing. It is expected that the approval could be finalized as early as the regular Financial Services Commission meeting scheduled for September 23.

If the license is ultimately granted, Meritz Securities will become the ninth issuer in the issuance bill business, following Korea Investment & Securities, Mirae Asset Securities, NH Investment & Securities, KB Securities, Kiwoom Securities, Hana Securities, and Shinhan Investment & Securities.

An issuance bill is a product with a maturity of one year or less, issued on the sole credit of securities companies designated as comprehensive financial investment business entities with equity capital of at least 4 trillion won. Up to 200% of a company's equity capital can be issued as these notes. This business is considered a core area for large-scale investment banks, as it allows them to secure large funds in a stable manner.

As of the end of the first half of the year, Meritz Securities' standalone equity capital stood at approximately 8.35 trillion won, which means, applying the 200% limit, the company could potentially raise up to around 16.7 trillion won in funds.

Meritz Securities applied for the issuance bill business license in July last year, joining a wave of other major securities firms entering the market. However, the review process was delayed due to an investigation by prosecutors into alleged unfair trading of Ewha Electric's bond with warrants (BW) and inspections by the Financial Supervisory Service at Meritz Securities' branches, which impacted the licensing review as well.

This content was produced with the assistance of AI translation services.