LSC News

UAB Makveta fined LTL 8,600 for market manipulation

30/06/2009 | LSC desicions

In the period from October 2008 to January 2009 UAB Makveta on total 21 occasions at the close of the trading sessions of the Securities Exchange NASDAQ OMX Vilnius concluded the deals at the price higher than the preceding price (on two occasions – at the same price) for an insignificant amount of shares (9 deals for 770 shares and 18 deals for 1,768 shares) of AB Rokiškio sūris (RSU) thus affecting the closing price of the shares. The RSU price was thus significantly raised on 7 October 2008, 9 October, 13 November, 14 November and 26 November. Such actions by UAB Makveta created an untruthful impression about the price of RSU thus ultimately misleading investors considering the closing price of the financial instruments in question.

 

In the course of the investigation the LSC established that Gintautas Zokaitis, Director of UAB Makveta had concluded three repurchase agreements (REPO) and, with a view to avoiding a margin call duty was interested in maintaining the price of the shares in question.

 

When imposing the fine the LSC duly considered an alleviating circumstance to the effect that UAB Makveta acknowledged to have committed an infringement of the law.

 

The prohibition of market manipulation is established in the Law on Markets in Financial Instruments.

 

On 17 March 2009, acting in accordance with the Code of the Administrative Violations of Law, the LSC imposed upon Gintautas Zokaitis, Director of UAB Makveta a fine of LTL 1,500 for manipulation in shares of RSU.