Romanian Association for Investor Protection: The Proprietatea Fund bought "Erste" shares in Vienna instead of in Bucharest

The Proprietatea Fund (FP), the largest investor on the Romanian stock market, bought "Erste" shares (symbol: EBS) from a foreign stock market, despite the fact that the stock is also listed on the Bucharest Stock Exchange, a communiqué of the Association for the Protection of Investors (AIPC) states. In the opinion of the AIPC officials, the trades of over 60 million Euros that the Proprietatea Fund made abroad should trigger a warning on the state of the Bucharest Stock Exchange.

"It is very likely that a trades of over 60 million Euros for a single issuer would have dramatically stimulated the activity of the Romanian stock market. The transaction (made on a foreign stock exchange) raises a warning over the fact that we have one of the most expensive and inefficient exchanges in the world. Franklin Templeton is also an important shareholder of the Bucharest Stock Exchange. Its choice to perform the trade on a different stock exchange proves that the listing of Erste in Bucharest was made just for show and because it had to be done, just like the communist five-year plans".

The AIPC complains that brokers, from their positions of shareholders of the BSE, are still charging very high commissions, even though the Bucharest Stock Exchange has amassed huge amounts of tens of millions of Euros in its accounts. As a result, the officials of the AIPC consider that emergency measures need to be taken in order have the BSE and the CNVM lower their fees.

Contacted by BURSA, the representatives of the Proprietatea Fund did not wish to deny or confirm whether the trades involving EBS shares mentioned by the AIPC took place or not, stating it was not the policy of Franklin Templeton to comment on specific stocks.

The management of the Proprietatea Fund recently reported that it had an exposure of 1.65% to Austrian companies.