Tesco has become the first listed company to be ordered by the Financial Conduct Authority to pay compensation to investors as a result of market abuse.

The supermarket chain today admitted that a trading update published on 29 August 2014, which stated Tesco expected a profit of £1.1bn for the previous six months, gave a false or misleading impression about the value of shares and bonds.

The statement was corrected on 22 September 2014 and the company has now agreed to pay an estimated £85m to investors who bought securities at an inflated price in the intervening period.

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