ID :
189155
Fri, 06/17/2011 - 06:52
Auther :
Shortlink :
https://oananews.org//node/189155
The shortlink copeid
KRX to keep tabs on resource developers' filings
South Korea's bourse operator said Friday that it will step up supervision of false regulatory filings by local resource developers as part of efforts to protect investors.
The move comes as Gloworks Inc., a resource development firm, is set to be delisted from the secondary KOSDAQ market. The company's CEO is charged of manipulating stock prices and pocketing profits worth 69.1 billion won (US$63.5 million) by spreading false information on a Mongolian mine development project.
The Korea Exchange (KRX) said in an e-mailed statement that it will tighten surveillance on companies that post regulatory filings on resource development projects. The firms will be required to submit documents from related officials at both home and abroad, according to the KRX.
The bourse operator also plans to push companies to update their initial regulatory filings on the development projects on a quarterly to yearly basis.
Stock manipulation and fraud cases involving overseas resource development have been rising over the last five years. According to KRX data, 15 of the 28 companies which posted regulatory filings on resource development projects have been delisted.
The data showed that nearly 70 percent of the delisted companies were involved in embezzlement, in which company officials illegally gained investment funds collected for resource development.
The move comes as Gloworks Inc., a resource development firm, is set to be delisted from the secondary KOSDAQ market. The company's CEO is charged of manipulating stock prices and pocketing profits worth 69.1 billion won (US$63.5 million) by spreading false information on a Mongolian mine development project.
The Korea Exchange (KRX) said in an e-mailed statement that it will tighten surveillance on companies that post regulatory filings on resource development projects. The firms will be required to submit documents from related officials at both home and abroad, according to the KRX.
The bourse operator also plans to push companies to update their initial regulatory filings on the development projects on a quarterly to yearly basis.
Stock manipulation and fraud cases involving overseas resource development have been rising over the last five years. According to KRX data, 15 of the 28 companies which posted regulatory filings on resource development projects have been delisted.
The data showed that nearly 70 percent of the delisted companies were involved in embezzlement, in which company officials illegally gained investment funds collected for resource development.
