The Bank of Russia established the facts of illegal use of insider information when trading ordinary shares of Raspadskaya PJSC at organized trading held in November 2020. According to the regulator, an employee of the KPMG audit company Dmitry Smolin, an employee of Evraz Holding Narine Mamaryan, her husband Evgeny Panov and close relatives Kristina Mamaryan and Greta Petrosyan used insider information for private purposes.
“During the implementation of the EVRAZ plc company’s project to consolidate the coal mining business at the level of PJSC Raspadskaya, persons received access to information about upcoming decisions on the agenda of the meeting of the board of directors related to the upcoming transaction to acquire 100% of the authorized capital of JSC UUK Yuzhkuzbassugol and buy out shares from the issuer’s shareholders,” the Central Bank explained.
The regulator emphasized that such information before its publication was insider information, since it was accurate and specific, contained a market value of shares determined by an independent appraiser for the purposes of buyback, significantly exceeding their current quotes, and could have a significant impact on the market prices of shares in organized trading in the event its distribution.
The disclosure of this information took place on November 13, 2020, to which the market reacted with a significant increase in prices and trading volume of Raspadskaya shares, the Central Bank noted. Smolin, Mamaryan and her relatives in the course of several days prior to the publication of information in the main trading mode purchased shares at prices below the buyback, and then sold them at the peak of growth.
“According to the results of the audit, the persons violated the prohibition established by clause 1 of part 1 of Article 6 of Federal Law No. 224-FZ. while Mamaryan H.Oh. the prohibition established by clause 2 of part 1 of article 6 of Federal Law No. 224-FZ was also violated. In connection with the identified violations, the Bank of Russia, within the framework of its competence, took a number of measures aimed at preventing similar violations in the future, including suspending trading on their accounts,” the Central Bank concluded.