short selling ban to be continued

The corporate watchdog, the Australian Securities and Investment Commission (ASIC), has just announced it's extending its temporary ban on short selling.

The Minister for Superannuation and Corporate Law, Senator Nick Sherry, says he backs the regulator's move.

"We've acted quickly to legislate and require the disclosure of short-selling. Other countries are still developing their short-selling regime and the way in which it will be disclosed, so Australia is actually ahead of the game in respect to disclosure," he said.

"But the issue for some of the interest groups is the timing of that disclosure. Now, we'll take into account their arguments, ASIC will take into account their arguments when the short selling disclosure regime is finalised."

Mr Gilbert says regulators should be provided with short selling positions soon after they are taken. But he argues the public must not get that information for at least two to four weeks.

Senator Sherry disagrees.

"I think what is paramount in the current circumstances is market stability," he said.

"The various views of the various vested interests are legitimate, but it is the national interest that will be uppermost in our mind when finalising these regulations."