ASX beefs up fines for market manipulation

Any stockbrokers found to be seriously manipulating the market will face a maximum fine of $1 million from Monday. The Australian Securities Exchange said that the increase from the current $250,000 brings Australia into line with international markets. The move by the ASX comes following concerns that trading practices such as short selling have been behind the sharp falls in the share prices of some companies. ASX chief executive, Robert Elstone, said that 45 possible breaches of the Corporations Act had been referred to the Australian Securities and Investments Commission for investigation during the eight months to February, made up of 17 possible cases of insider trading, 13 for not meeting continuous disclosure requirements and 15 for market manipulation.

Source: The Australian