ITALY: CONSOB issues reminder of Italy short selling rules in relation to capital increases

Tuesday May 26 2015

The Italian securities regulator CONSOB has issued a reminder to market participants with regards to Italy short selling rules.

Banca Monte dei Paschi di Siena SpA (“Banca MPS”) has on Monday 25th May begun a capital increase. The increase in question has characteristics of strong dilution. There is a risk that during the rights offering of the new shares, there will occur pricing anomalies, consisting of an overestimation of the market price of the shares and their theoretical value.

Consob will monitor developments closely in the market of shares in Banca MPS (code ISIN IT0005092165) during the offer period, with particular reference to the fulfillment of the measures in terms of short sales set out in EU Regulation. 236/2012 and the obligation to deliver the securities.

It therefore draws attention to the timely compliance by any person, whether natural or legal persons, including foreign companies, with the ban on short selling in the absence of the availability of the securities (so-called “naked” short sales) under Art. 12 of the EU Regulation 236/2012, and of the disclosure of net short positions provided for by Arts. 5, 6 and 9 of the Regulation.

Violations of the rules mentioned above have previously led to the imposition of fines by Consob.

Click on the above link for more details (in Italian).