MNB bans NVT from unlicenced activities, launches probe
MNB headquarters in Budapest (Image by Jessica Fejos)
The National Bank of Hungary (MNB) has prohibited Budapest-based NVT Cooperation from publicly selling shares it earlier distributed privately and from conducting any unlicensed activities, the central bank announced today, according to Hungarian news agency MTI.
The MNB also announced the launch of an investigation to determine whether the activity concerned constitutes financial service activity or supplementary activity, as per the act on credit institutions and financial enterprises.
The MNB last year rejected the companyʼs application to publish the prospectus and notice necessary for publicly selling and listing the securities concerned on the stock exchange. Nevertheless, there is evidence that the company is currently selling its shares publicly at 17% yield per annum with a repurchase guarantee.
However, it appears the sales offer for the companyʼs shares may not comply with the provisions of the capital market act relating to the public offering of securities and NVT Cooperation is not be listed in the records of the MNB, MTI said.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.