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Facts of manipulation in market for units of Real Estate CUIF Arshin managed by CJSC Diana Management Company established

22 ноября 2019 года
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The Bank of Russia has established facts of manipulation in the market for units of Real Estate CUIF Arshin (ISIN: RU000A0JUN16; hereinafter, the Units and the Fund) managed by CJSC Diana Management Company (hereinafter, the Management Company) in on-exchange trading from 27 August 2014 through 27 June 2016 (hereinafter, the Period).

The Bank of Russia has further established that the market for on-exchange trading with the Units is formed by trades by customers of Russian professional securities market participants: Agro Capital LLC (TIN: 5007058270), PJSC Montazh (TIN: 5056000107), Teplo-Service LLC (TIN: 7721781963) and OZP LLC (TIN: 7704255819) hereinafter, the Unit Market Participants).

The investigation revealed multiple ties between the Unit Market Participants and the Management Company. In addition, the Unit Market Participants and the associated appraisal company misled Unit market participants and misstated the cost of the Fund’s assets when it had been created and in on-exchange Units trading.

The Bank of Russia has established that the Unit Market Participants, in collusion with one another, conducted offsetting trades with the Units having identical price and volume parameters. This helped form and maintain the price of the Units in on-exchange trading. In addition, trades of the Unit Market Participants caused significant deviations in the trading parameters of Unit during the Period.

Pursuant to 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 referred to as the Federal Law), the actions taken by Agro Capital LLC, PJSC Montazh, Teplo-Service LLC and OZP LLC during the Period are qualified as Unit market manipulation.

Thereby, these entities violated the ban imposed by Part 2, Article 6 of the Federal Law.

The Bank of Russia sent instructions to Agro Capital LLC, PJSC Montazh, Teplo-Service LLC and OZP LLC aimed at preventing similar violations in future.


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