The Transparency and Integrity of the Capital Market in Romania

• Author: Manea, L.
• Position: Law Department, Transilvania University of Brasov
• Pages: 117-128

Bulletin of the Transilvania University of Braşov

Series VII: Social Sciences • Law • Vol. 7 (56) No. 1 - 2014

THE TRANSPARENCY AND INTEGRITY

OF THE CAPITAL MARKET IN ROMANIA

Laura MANEA1

Abstract: Capital market regulations at EU level are focused on applying

and compliance of the Member States with the principles of investors’

protection on the capital market, as a practical and effective measure for

increasing the credibility in the public eye of the investment transactions on

the capital market, to stimulate resources availabl e through the

capitalization of financial instruments on the market and therefore to ensure

the capital flow on the market in correct, real and equitable conditions for all

the participants, so that the price on the capital market be subject to the

natural rule of supply and demand.

Key words: capital market, investor, financial instruments, transaction,

transparency.

1 Law Department, Transilvania University of Braşov.

1. Introduction

In the double aim of protecting investors

and ensuring the smooth functioning of

securities markets through market

transactions that comply publicity and

ensure the creation of a real price based on

supply and demand on the ma rket,

ensuring the transparency of transactions

and the obligation of regul ators and control

at national level from the authorities in

order to ensure that the rules laid down for

this purpose, at Community and national

level are applied to the capital market

participants, thus become general rules in

the European directives.

A constant at Community level, whether

we refer to Directive 2004/39/EC [6],

Directive 2003/6/EC [5], Directive

2004/109/EC [7] or Directive 2013/50 /

EU [8], the issue of transparency on the

capital market by ensuring and complying

with the publicity regulations and reporting

information on the market participants is

constantly approached by identifying new

measures and implementation procedures.

The degree of transparency of a capital

market influences not only the

development of transactions in terms of

legality and equal treatment, but increases

public confidence in that market, enhances

market credibility and that of financial

instruments, stimulates investment in the

capital market, actively supports economic

development and decreases the incidence

of unlawful acts within the market.

To enable investors or market

participants to assess at any time the terms

of a transaction with shares that they

intend to carry out in order to form the

investment decision and in order to be able

to verify afterwards the conditions under

which it was executed, common rules are

necessary regarding the transparency of

market operations among the Member

States and the capital markets regarding