Harbinger Capital Partners, a $20 billion US hedge fund manager, today admitted to "shorting" more than 3.29 per cent of shares in HBOS sending the bank's stock back below its rights issue price.

Harbinger's disclosure is the second to emerge since new rules drawn up by Financial Services Authority (FSA), the City watchdog, to stop short-sellers from forcing down a company's shares during a rights issue came into force on Friday, June 20.

Shares in HBOS lost 9.25p to 273p today, below the 275p price the bank will sell its stock at when it attempts to raise £4 billion through a rights issue.

The FSA released the new rules two weeks ago after HBOS was forced to issue a statement to the market clarifying its trading position after its share price slumped below the rights issue price.

On Friday, when the new rules went live, the bank's shares again descended below 275p.

If the share price remains close to or below the subscription price, HBOS's underwriters, Dresdner Kleinwort and Morgan Stanley, will be left with much of £4billion of shares being issued. Bankers said that they had found sub-underwriters for a substantial portion of the stock.

It also emerged today Tiger Global Management, a New York hedge fund backed by legendary investor Julian Robertson, has built up short positions in 3.4 per cent Bradford & Bingley's shares.

The mortgage bank trying to complete a £258 million rights issue. Tiger Global Management, run by Chase Coleman, is holding an exposure worth almost £14.4 million.

Last week, Odey Asset Management, the London fund manager, said that it had short positions of 0.28 per cent of Bradford & Bingley's shares.

Under the FSA's new rules investors shorting more than 0.25 per cent of a company's shares during a rights issue now have to issue an announcement to the stock exchange.

Short-sellers, often hedge funds, sell borrowed shares in the market in the hope of buying them back more cheaply at a later date.

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