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Tuesday, January 25, 2005

CNVM steps back after received strong negative reactions from the market players

The National Securities Commission (CNVM) managed late last week to set the capital market players on fire when it asked for the account receipts from the share registers for all share sale operations.

Yesterday, the Commission said it would delay this request until February 1.

CNVM spokesman Ciprian Ene yesterday said the commission would postpone until next week any final decision regarding the order that requires all share sale operations to have the account receipts from the share registers.

The CNVM official added that representatives of the capital market will also be consulted as far as the final order is concerned. Although no meeting has been established yet, Ene said an agreement would be reached by next Tuesday.

Brokers said the measure would block most of the share sale transactions, citing investors are not ready for these conditions, as obtaining an account receipt could take up to 5 days.

Until now, only the trading orders coming from coupon owners had to be accompanied with the account receipts, so the seller could know exactly the number of shares that were to be sold. Coupon owners became minor shareholders in several companies following the mass privatization process.

The CNVM is now at a crossroads as the incumbent government plans to re-organize the structure of the institutions controlling the financial markets. The project would create a single financial supervision institution, which would unite the Insurance Supervisory Commission, the banking supervision unit of the National Bank of Romania and CNVM.

Posted by Iulia Rasoiu : 1/25/2005 09:25:00 am