Hong Kong's Securities and Futures Commission reprimanded and fined Fulbright Securities Ltd. HK$3.6 million for internal control failures related to illegal short selling.

In a Dec. 23 release, the SFC said Fulbright Securities also failed to report related short-selling incidents in a timely manner as required under the regulator's code of conduct.

Between October 2015 and March 2016, the regulator found at least 93 instances of short sales executed by Fulbright Securities. The short-selling incidents stemmed from the brokerage's failure to set up effective internal control procedures to detect and prevent illegal short selling, the SFC said.

According to the SFC, the brokerage already took measures to rectify its internal control failures after the incidents.