2010-04-05
TSE forbids using Market Observation Post System to manipulate stock prices
The Taiwan Stock Exchange (TSE) introduced new mechanisms as of Mar 25, 2010 to tackle companies intentionally announcing exaggerated news or unverified financial outlooks on the Market Observation Post System.
The TSE noted that some listed companies made announcements on the System with language such as “record-high revenues” while others announced the increase of prospective revenues for Q1. The TSE is concerned that such announcements will mislead investors and cause other companies to treat the System as a tool for manipulation of stock prices.
In order to prevent listed companies from using the System to manipulate stock prices on the market, the TSE adopted four main mechanisms, including the imposition of fines from NT$ 50,000 to NT$ 1 million, announcement of the company violation on the System, order on the representative of the company for corrections and improvements, and publication of press release to warn the public about such violation.
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