No more transactions through the Central Depository for FP shares

Transactions involving Fondul Proprietatea (Property Fund) shares, conducted via the Central Securities Depository, can be sealed until Wednesday December 22nd at the latest, when the Fund is officially placed under the authority of the National Securities Commission (CNVM) and becomes ruled by capital market legislation.
“December 22nd will see the end of a grey time in the history of the Fund, with barely legal transactions,” said Lorand Kralik, CNVM commissioner.
The Commission yesterday approved the fund’s listing prospectus, and, by December 22nd at the latest, it will issue a certificate for the Fund’s shares, classifying them as securities, which will not allow them to be traded elsewhere other than on a regulated and transparent market. Transactions will be resumed after the Fund is listed on the Stock Exchange, with the listing scheduled for January 2011.
In the past three months alone, FP share trading amounted to around 775 million RON, according to ZF calculations, compared with an overall volume of trading of 822 million RON on the entire Stock Exchange. Over 10% of the fund’s shares changed hands in the past three months. The price of a share on the “grey” market ranges between 0.4 and 0.5 RON, while the nominal value stands at 1 RON.
The market that the Fund’s shares were traded on from March 2008 until the present, following a decision of the Tariceanu government, generated controversies because it allowed people who had nothing to do with compensation of former owners, to become shareholders of the Fund at undervalued prices because of the countless postponements of the listing.