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Facts of insider trading in ordinary shares of PJSC Pharmsynthez established

27 March 2024
Press release

The Bank of Russia has carried out an investigation for compliance with the requirements of Federal Law No. 224-FZ1 and established facts of misuse by Maxim V. Sirosh of insider information when conducting transactions with shares of PJSC Pharmsynthez (ISIN RU000A0JR514) (hereinafter, the Shares and the Company) in on-exchange trading over the period from 2 June 2021 to 7 June 2021 (hereinafter, the Period).

M. V. Sirosh put on the Company’s insider list had the information about the board of directors’ upcoming decision to approve a large transaction of the Company’s subsidiary. This information was classified as insider information according to the law effective during the Period.

Having this insider information, M. V. Sirosh opened a brokerage account and was conducting transactions to acquire the Shares during several days before the disclosure of the insider information that significantly affected prices for the Shares in on-exchange trading.

The Bank of Russia qualifies these actions as a breach of the ban on using insider information stipulated by Clause 1 of Part 1 of Article 6 of Federal Law No. 224-FZ.

The Bank of Russia has sent the binding order to M. V. Sirosh to cease and desist from similar violations in the future and suspended transactions on his trading accounts.

In addition, the investigation has revealed that the list of the Company’s insider information did not comply with the effective laws and the Company was not applying internal control rules, mandatory for issuers, in the area of combating insider trading and had no officer responsible for the implementation of the rules.

In view of the Company’s failure to comply with certain requirements of Federal Law No. 224-FZ, the Bank of Russia has sent the binding order to the Company to eliminate these violations. Furthermore, the Company is subject to administrative proceedings.

The Bank of Russia urges issuers and other legal entities listed in Part 1 of Article 3 of Federal Law No. 224-FZ to duly fulfil their obligations to take the legally required measures for preventing, detecting, and deterring the misuse of insider information.

1 Federal Law No. 224-FZ, dated 27 July 2010, ‘On Countering the Misuse of Insider Information and Market Manipulation and Amending Certain Laws of the Russian Federation’.

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