Press Service

The Central Bank of the Russian Federation (Bank of Russia)

Press Service

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Facts of manipulation in the market for ordinary shares of PJSC Seligdar established

The Bank of Russia has established facts of manipulation in the market for PJSC Seligdar’s ordinary shares (ISIN: RU000A0JPR50; hereinafter, the Shares) during the period from 18.09.2017 to 27.09.2017 (hereinafter, the Period) in exchange trading.

The Bank of Russia’s investigation revealed transactions conducted undercollusion, as a result of which LLC Insurance Company TIT (TIN 7714819895) had sold a large block of the Shares during the Period to LLC Management Company RFC-Capital (TIN 7444036805) that had acted using pension savings of the Pension Fund of the Russian Federation (PFR) in anonymous exchange trading.

Overall intra-day amounts of offsetting orders to buy the Shares from LLC Management Company RFC-Capital using the PFR’s funds and to sell the Shares from LLC Insurance Company TIT were identical for three trading days and similar in volumes for the remaining five trading days. Moreover, prices in the said entities’ orders for purchase and sale of the Shares were identical during seven out of eight trading days.

The above counterparties’ transactions whose share in the aggregate trading volume of the Shares exceeded 92% during the Period resulted in a significant deviations in the Shares trading parameters.

Along with that, the Bank of Russia analysed demand for the Shares in exchange trading during the Period and established that it would have been impossible to sell a large block of the Shares to numerous investors if there had been no demand on the part of LLC Management Company RFC-Capital that acted using the PFR’s funds.

In accordance with Clause 2, Part 1, Article 5 of 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’ (hereinafter, the Federal Law), the actions of LLC Management Company RFC-Capital and LLC Insurance Company TIT during the Period are qualified as manipulation in the market for the Shares. Therefore, the above entities breached the ban imposed by Part 2, Article 6 of the Federal Law.

The Bank of Russia took administrative measures against the persons involved in market manipulation in order to prevent similar violations in the future.

27 November 2019

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