ASIC targets heavily sold securities
The Australian Securities and Investments Commission (ASIC) is beefing up enquiries into false and misleading rumours by seeking information on trading activities in heavily sold securities.
ASIC announced today that it has extended enquiries to making formal requests for information from a number of market participants about trading in certain securities over the past weeks.
The enquiries are related to conduct that could involve the spreading of false or misleading rumours or predatory trading, which could amount to market manipulation or insider trading, ASIC said in a statement.
This announcement follows yesterday’s ASIC release, which raised concerns that gossip and false rumours are being used to artificially provoke sales and reduce the market price of some shares.
ASIC said yesterday that guilty parties would be targeted for prosecution and may face up to five years in jail.
With a view to seeking assistance on any international aspects, ASIC is contacting the Securities Exchange Commission in the United States, the Financial Services Authority in the United Kingdom and the Securities and Futures Commission in Hong Kong.
AUTHOR
George Liondis
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