On establishing fact of manipulation in the market for ordinary shares of PJSC GC ‘TNS energo’ (PAO GC “TNS energo”) during trading on PJSC Moscow Exchange (PAO Moscow Exchange)
The Bank of Russia established the fact of manipulation in the market for ordinary shares of PJSC GC ‘TNS energo’ (hereinafter the Shares) during trading on PJSC Moscow Exchange over the period from 17 June 2015 (start of trading) through 21 October 2016 conducted by a group of individuals / legal entities comprising Yury L. Ivlev, LLC GARANT ENERGO, LLC Voronezhsbyt and Dmitry V. Raskopin.
This group was engaged in coordinated actions aimed at misleading investors as to the true liquidity of and the demand for the Shares. Yu. Ivlev, LLC GARANT ENERGO, LLC Voronezhsbyt and D. Raskopin eventually conducted more than 50% of the total volume of trading in the Shares, which caused an increase in the price from 1,185 to 2,000 rubles per Share during the mentioned period.
The coordinated actions of the group were based on the fact that Yu. Ivlev, being the advisor on investment and shareholders relations at PJSC GC ‘TNS energo’, placed orders from his own trading account, as well as on behalf and for account of LLC GARANT ENERGO, LLC Voronezhsbyt and D. Raskopin. However, Yu. Ivlevwas not properly authorized to conduct trading on behalf and for account of LLC GARANT ENERGO, LLC Voronezhsbyt and D. Raskopin. D. Raskopin was also an employee of the Shares issuer; and the main party to the Shares trading, LLC GARANT ENERGO, was interrelated with PJSC GC ‘TNS energo’ and LLC Voronezhsbyt.
According to Federal Law No.
At the same time, the actions performed by these persons were not aimed at deriving revenue directly from trading in the Shares on the Moscow Exchange.
According to the outcome of the investigation and explanations given by the Shares issuer, the company sought to increase capitalisation and expand the Shares trading in order to improve its ranking position of a listed company, which in turn could help attract funds of private investors and pension savings to reduce the debt burden of PJSC GC ‘TNS energo’.
It should be noted that trading activities across the accounts of the mentioned individuals and legal entities terminated during the period when the Bank of Russia initiated its requests to PJSC GC ‘TNS energo’, which caused a considerable decrease in the Shares price.
Market manipulation is a gross violation of the requirements set forth in the legislation of the Russian Federation. Besides, it does not comply with the standards of professional conduct of financial market participants. With regard to the persons invoved in market manipulation with the Shares, measures will be taken to prevent such actions in future.
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