▲ This undated file photo shows a seminar on improving rules on split listing hosted by the Financial Services Commission. (Yonhap)

SEOUL, July 31 (Yonhap) -- The Financial Services Commission (FSC) said Friday new strict regulations will be implemented in early August to curb "split listing" by conglomerates, in a bid to bolster the fiduciary duty of listed firms and interests of ordinary shareholders.

Split listing, also referred to as duplicate listing, occurs when a core business division is spun off and listed separately, and has long been cited as one of the major reasons behind relatively low values for local stocks.

Financial regulators have been working to map out new regulations to ban the practice of split listing "in principle," while making efforts to revise relevant rules and enhance shareholder protection.

Under the new regulations set to take effect on Aug. 3, the voting right of the biggest shareholder and related parties of a parent company will be limited at 3 percent if the parent company's affiliate is listed.

Over a quarter of all issued shares is required to support the split listing.

Also, a parent company's board is required to review the impact of split listing on its shareholders and draw up measures to ensure shareholder protection.

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