Facts of market manipulation in on-exchange trading for ordinary shares of PJSC CIT, PJSC PESC, and PJSC ROSSETI South established
The Bank of Russia has established facts of market manipulation in on-exchange trading for ordinary shares of PJSC City Innovative Technologies (PJSC CIT) (ISIN:
RU000A0JV532), PJSC Perm Energy Supplying Company (PJSC PESC) (ISIN:
RU000A0ET123), and ROSSETI South, PJSC (ISIN:
RU000A0JPPG8) (hereinafter, the Shares) over the period from 2 March 2021 through 5 March 2021 (hereinafter, the Period).
In March 2021, the Bank of Russia noted information campaigns in several groups1 of the Telegram messenger aimed at inviting private investors to conclude transactions in the Shares markets.
The purpose of this activity was to change their market price by applying the pump and dump strategy.
To coordinate unfair market activity, instructions were published to specify a financial instrument, the start time of its purchase, and the target price for selling it.
The Bank of Russia has limited transactions aimed at creating volatility in the Shares markets in accounts of some individuals in order to promptly prevent market manipulation.
The investigation conducted by the Bank of Russia established that the said transactions in brokerage accounts of some individuals led to significant deviations in the Shares trading volume.
Furthermore, the individuals themselves mainly suffered losses from such transactions.
According to the findings of the investigation, the transactions carried out in on-exchange trading by the individuals in collusion with each other that caused significant deviations in the trading parameters are qualified as market manipulation pursuant to Clause 2 of Part 1 of Article 5 of Federal Law No.
These individuals thus breached the ban imposed by Part 2 of Article 6 of the Federal Law.
The Bank of Russia ordered to impose fines on a number of individuals for market manipulations and sent them binding orders to cease and desist from similar violations in the future.
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