CNVM issues fine worth 330,000 euros for capital market manipulation

The National Securities Commission (CNVM), run by Gabriela Anghelache (photo) as chairperson, has fined the Oradea-based brokerage firm Mobinvest, its general manager, as well as one of its brokers, with 1.12 million RON (330,000 euros). The fine was issued for manipulating the capital market by artificially boosting the price of shares of chemical fertiliser manufacturer Amonil Slobozia, on the Bucharest Stock Exchange. The fines are worth half of the value of the transactions made with Amonil shares. These are the first fines issued by CNVM for charges of manipulating the capital market. “SSIF Mobinvest was found to have placed orders and made transactions with Amoil shares, which generated a false impression regarding the share price set by the market and the value of Amonil shares was found to be artificial,” states the penalising ordinance issued by CNVM. According to the article 244, paragraph 5 of the Law 297/2004 regarding the capital market, such actions are considered to be a manipulation of the capital market and are illegal and regarded as crimes. The Mobinvest representatives could not be reached yesterday to comment on the decisions made by the CNVM. Over the last two months of 2006, Amonil shares had seen a significant increase on the stock exchange, although the company had stopped its production.