08-202 Enquiries into market manipulation
Wednesday 17 September 2008
ASIC today said it has extended its enquiries launched in March this year into market manipulation.
Recent volatility in the market has seen an increase in the number of complaints about false rumours and market manipulation. ASIC is looking into alleged false rumours about a number of companies, including Macquarie Group Limited.
Pushing false rumours designed to harm a company, such as by forcing a share price down, is illegal.
In March this year, ASIC launched Project Mint, an investigation into the integrity of the Australian markets and the impact of false rumours and collusion. (Refer ASIC Media Release 08-047 False and misleading rumours and Media Release 08-048 ASIC seeks information on trading activities in heavily sold securities).
If a person spreads a false rumour without properly investigating its truth, the person risks breaching section 1041E of the Corporations Act. The maximum penalty for an individual breaching this section of the Act is five years imprisonment and/or a fine of $220,000.
This section sits alongside the prohibitions on market manipulation and engaging in dishonest conduct in relation to a financial product, which carry equivalent penalties.
ASIC Website: Printed 02/09/2010
