Facts of market manipulation in on-exchange trading for PJSC Saratovenergo ordinary shares established
The Bank of Russia established facts of market manipulation in on-exchange trading for ordinary shares of PJSC Saratovenergo (ISIN: RU0009100754; hereinafter, the Shares) over the period from 6 April 2021 through 7 April 2021.
In April 2021, the Bank of Russia investigated unusual trading activities and found a string of posts in PInvest Group Chat in the Telegram messenger prompting private investors to carry out coordinated transactions in the Shares market. These posts were aimed at changing prices using the pump and dump strategy.
To coordinate the unfair market activity, the organiser published instructions specifying the financial instrument, the start time of its purchase, and the target price for selling it.
The Bank of Russia promptly initiated the blocking of the trade accounts (the restriction of the transactions in brokerage accounts) held by individuals who were involved in the unfair market activity. This measure prevented further manipulation in the Shares market.
The investigation conducted by the Bank of Russia established that the transactions with the Shares in the brokerage accounts held by V.N. Belyaevskiy, E.V. Guseva, R.Kh. Karimov, D.Yu. Korzinkin, D.L. Labazanov, N.F. Mazitov, A.R. Ramazanova, U.S. Sanzharbek, and A.I. Chechushkov caused significant deviations in trading volumes. U.S. Sanzharbek was the coordinator of the market manipulation activities. Notably, the majority of those involved either incurred losses or made minor profits as a result of these transactions.
According to the findings of the investigation, the transactions with the Shares carried out in on-exchange trading by the above individuals in collusion, 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.
The regulator directed the professional securities market participants, whose clients are the said individuals, to suspend on-exchange transactions on orders submitted by the said clients via the Internet.
Also, the Bank of Russia sent binding orders to V.N. Belyaevskiy, E.V. Guseva, R.Kh. Karimov, D.Yu. Korzinkin, D.L. Labazanov, N.F. Mazitov, A.R. Ramazanova, U.S. Sanzharbek, and A.I. Chechushkov to cease and desist from similar violations in the future.
The Bank of Russia warns investors against their involvement in collusion or coordinated actions to distort fair pricing in on-exchange trading.
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