The Financial Sector Conduct Authority (FSCA) said Friday it will not be taking any action regarding the alleged share price manipulation of JSE-listed Mantengu Mining.
The FSCA stated that its investigation into the alleged prohibited trading practices uncovered no evidence to support the allegations of price manipulation.
On February 19, 2024, Mantengu reported to the JSE and the FSCA that a certain group of individuals were involved in the manipulation of the company’s share price. Mantengu further claimed that the FSCA had found a prima facie case warranting further investigation.
“The FSCA wishes to clarify that claims that it found a prima facie case for further investigation are incorrect. The Authority received a complaint from Mantengu alleging prohibited trading practices and insider trading. Given the serious nature of the allegations and because they (in their untested form) met the threshold of reasonable suspicion, the FSCA considered it prudent to initiate an investigation,” the FSCA said in a statement.
“After a thorough investigation, the FSCA concluded the transactions and orders identified by Mantengu were lawful securities transactions in the ordinary course of business,” the FSCA said in a statement.
With regard to the allegations of naked short selling of 387 044 Mantengu shares during the first week of June 2024, the FSCA concluded the transactions did not amount to uncovered short sales.
“The FSCA has also noted media reports indicating that Mantengu has laid criminal charges against the JSE and some of its staff. Regarding the specific transactions investigated by the FSCA, the Authority found no reason to suspect improper conduct by the JSE or any of its officials,” the FSCA said.
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