Based on the findings of an investigation, the Bank of Russia identified misuse of insider information by Kirill G. Sokolov. Sokolov, an executive director and chief of the investor relations center at a public joint-stock company with shares listed on the Moscow Exchange, conducted 185 transactions involving the company’s shares. These transactions took advantage of insider information regarding future dividend payments for 2022.
The dividends, as specified in the data related to the Supervisory Board’s decision on the Issuer’s net profit distribution, exceeded investor expectations significantly. This information had a notable effect on the company’s share price during trading. Sokolov heightened his shareholding in the company using insider data and, following the information’s public disclosure, sold the shares to secure profits.
The Bank of Russia deems Sokolov’s actions a violation of the prohibition on using insider information laid out in Clause 1 of Part 1 of Article 6 of Federal Law No. 224-FZ. The Bank issued binding directives to Sokolov to prevent similar future infractions.
Additionally, the Bank of Russia advises issuers and other entities specified in Part 1 of Article 3 of Federal Law No. 224-FZ to meet legal obligations in preventing, detecting, and countering insider information misuse.
This statement refers to Federal Law No. 224-FZ, dated 27 July 2010, concerning combating insider information misuse and market manipulation.
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