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Financial Mirror (Cyprus) - - FRONT PAGE -

The se­cu­ri­ties reg­u­la­tor Hel­lenic Cap­i­tal Mar­ket Com­mis­sion is in­ves­ti­gat­ing some 150 cases whether for­eign funds and other in­sti­tu­tion­als vi­o­lated short-sell­ing rules ear­lier this year when the top four bailed-out banks banks launched rights is­sues.

Short-sell­ing in­volves in­vestors bor­row­ing shares to sell on the mar­ket and later buy­ing them back at a lower price for a profit.

The HCMC in­ves­ti­ga­tion is fo­cus­ing on sus­pi­cion that some funds or in­di­vid­u­als par­tic­i­pat­ing in rights is­sues of­fered by Na­tional Bank of Greece, Al­pha , Pi­raeus and Eurobank were short­ing bank stocks days be­fore they were due to re­ceive their al­lot­ted shares from the is­sue.

The reg­u­la­tor was re­port­edly tipped off by heavy trad­ing vol­umes and a sharp fall in bank share prices just be­fore the new shares be­gan trad­ing on the mar­ket, HCMC of­fi­cials said, adding that the in­ves­ti­ga­tion is ex­pected to con­clude in Jan­uary.

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