(Trinidad Express) Chairman of One Caribbean Media (OCM) Faarees Hosein has requested that the Trinidad and Tobago Securities and Exchange Commission (TTSEC) investigate a number of purchases and sales of the group’s shares since the start of the year.
Last Thursday, Hosein issued a letter to Lystra Lucillio, acting chief executive of the TTSEC, requesting that an investigation be commenced.
The letter was also copied to Eva Mitchell, acting chief executive of Trinidad and Tobago Stock Exchange Ltd.
OCM is the parent company of Trinidad Express Newspapers Ltd and CCN TV6.
In the letter, Hosein called for an examination of the list of trades between January 1 and October 16, during which certain trading activities were detected.
A breakdown of the activities was provided, with Hosein pointing out that during the period a total of 631,859 shares were traded.
Twenty-two instances of “significant declines” were identified on trade dates from January 13 to October 9.
And with regard to one shareholder, 14,000 OCM shares were sold while shares were also purchased.
“All sales, with the exception of one block on 5th May, were at a price lower than the purchase price on the two occasions shares were purchased by (name called). (Name called) sale on 4th May resulted in the share price moving from $6.50 to $6.10 and notably on the next day, 5th May, (name called) again sold shares at an even lower price of $6,” Hosein stated.
He said having considered the data, OCM was of the view there was “no plausible reason for someone selling at a loss having regard to the purchase of shares immediately preceding sales and may be done for the purpose of creating a false market for the shares contrary to Section 94 and 95 of the Securities Act”.
Hosein said OCM believes that this market activity amounts to sufficient grounds to request the commencement of an investigation by the Trinidad and Tobago Securities and Exchange Commission pursuant to its powers under Section 150 of the Securities Act Chap 83:02.
“Having regard to the price, the volume and the frequency of the share sales and the impact of the shares on the market, we are mindful of the grave consequences for the market in OCM shares and therefore, do not make this request lightly,” he stated.
