SIF stocks were soaring by 8.9% in average in the early trades at Bucharest Stock Exchange, as the stock market regulator suspended them from trading in early session, following a legislative proposal on the removal of 1% equity holding limit.

In the Wednesday’s early trades, BSE suspended for a half an hour the trade of FIC shares, in an effort to provide a transparent update to investors on a legislative proposal regarding the removal of the equity holding limit of 1%.

When FIC shares (BSE: SIF) were reintroduced in the trading arena, the stocks skyrocketed close to the upper variation limit of 15%.

Removal of equity holding limit proposal to be debated by the Parliament in September

The legislative proposal on the removal of the equity holding cap in financial investment companies could be debated by the plenary session of the Parliament in September, said Ovidiu Marian, one of the initiators of the proposal.

“We are analyzing this matter for over three months. We had guests at the sub-commission in charge of the capital market, at which BSE representatives attended, followed by a meeting with RNSC”, said Ovidiu Marian.

He added that the representatives of Romanian National Securities Commission had said that few years ago, the institution planned to take the same measure, but the proposal had no political backing. At a seminar held in Arad, FIC Banat-Crisana said it agreed with the removal of the equity holding limit.

The proposal was initiated by senators and deputies from various political parties and requests the removal of the equity holding cap of 1%.