The image of the Bucharest Stock Exchange is being unfairly trampled nowadays, by the very same press that a few days ago would gush over the record size of the "Petrom" Secondary Public Offering, which, according to the ecstatic comments made about it, "would put the Bucharest Stock Exchange on the map of foreign institutional investors".
After the failure of the Offering, these publications, even those claiming to be specializing in finance, completely changed their tune; they"re now claiming that the Bucharest Stock Exchange is "dead".
And why would that be?!
Get this: because it allows the majority shareholders of companies to mistreat minority shareholders.
And perhaps, because the CNVM isn"t lifting a finger to do anything about that mistreatment.
However, I was unable to understand what my colleagues are accusing the BSE of, in this particular matter.
Because it doesn"t have any.
The majority shareholders are always tempted to mistreat the minority shareholders anywhere in the world, which is why an entire body of regulations has been developed, along with a body of management principles that the managers of the company (as well as its shareholders) need to accept, to an extent, depending on market tradition.
We have both.
There is, indeed a weakness when it comes to the oversight of the Romanian National Securities Commission, but it is wrong to say that they are not doing anything at all is false; (I could provide examples that they are not sitting on their hands).
Court rulings on issues pertaining to the capital market are another weak spot, but it"s not they are not doing anything either.
Anyway, these vulnerabilities have nothing to do with the Secondary Public Offering of "Petrom", and our journalists didn"t find out about them only after the failure of the Offering.
If they wrote w
