Stock exchange agrees to suspend trading in GlobalSoft

THE CYPRUS Stock Exchange (CSE) yesterday announced that it would suspend trading in GlobalSoft (GLC) shares for a period of five working days.

The move came after the Securities and Exchange Commission (SEC) on Wednesday said it had sent its file on GLC to the Attorney-general’s office to determine whether there was a case for criminal proceedings.

The two regulatory bodies have been at loggerheads for over a week on whether to suspend GLC for investors’ protection.

Last week, the SEC recommended the suspension of trading in GLC shares pending its investigation into alleged breaches of stock exchange regulations, but the CSE refused, saying there was insufficient evidence.

The SEC made its recommendation after examining a report by independent auditors into the company’s stock market dealings. GlobalSoft has been trading under a separate category and on certain conditions regarding share price fluctuation for more than a month after being suspended from trading in early October. The company last week filed a £1 million suit against the SEC.

On Monday, the CSE board decided that GlobalSoft should continue trading under a separate category and subject to specific conditions, but again refused to suspend the company without more evidence.

But on Wednesday, the SEC released its report saying there had been possible violation of CSE regulations by the company with regard to the presentation of its financial statements in terms of a ” correct and faithful picture of the company’s affairs” .

GLC shares ended one cent down at 14 cents yesterday

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