The oversights in the new mechanism to be used for issuing new conversion deeds for shares in the "Proprietatea Fund", starting with May 2nd, allows the depreciation of the compensation awarded to former asset owners. (These flaws can be used at any time as backdoors for manipulation, which makes one wonder whether they are indeed mere oversights.)
The National Authority for the Restitution of Properties (ANRP) announced that it has resumed the issuing of conversion deeds in the "Proprietatea Fund", with 1.4 billion shares in the Fund to be issued, representing about 10% of the share capital of the Fund. The shares pertain to the 1,284 briefs with requests for compensation in stock, registered between January 11th and April 15th.
In reply to our query, the officials of the ANRP said that "in the case of conversions completed between May 2nd and May 6th, the ANRP will use the average weighted price calculated for the first 60 days of trading, calculated and communicated by the BSE on April 19th, (0.6176 lei/share), and for the conversions performed starting on May 9th 2011, the ANRP will use the average weighted price calculated for the last 60 trading sessions of the Proprietatea Fund".
According to the representatives of the institution, the conversion deeds will be issued based on the order in which the files containing requests for stock options have been submitted, filed by their titleholders during the suspension period (January 11th -May 2nd).
What is the deadline by which the ANRP must issue the conversion deeds, once the cases are registered? Who guarantees that speculators won"t affect the price of the stock during that period, depending on the interest in the compensation?
The registration of the requests for compensation in stock or in cash is a tedious process which can take from a few weeks to a few years.
Some of t
