90% aggrieved Bernas investors compensated in milestone SC civil recovery action-41 others yet to claim entitlement
The Securities Commission (SC) has to-date reimbursed close to 90 percent or 275 investors under a compensation scheme for losses incurred from an insider trading case involving Padiberas Nasional Berhad (Bernas) shares.
This is a significant milestone in the SC’s civil enforcement programme as it is the first time aggrieved investors in Malaysia are successfully compensated for investment losses resulting from a securities law transgression.
In August 2004, the SC initiated civil enforcement action against Kuala Lumpur City Securities Sdn Bhd (KL City Securities) and Wan Azmi bin Wan Abdul Rahman (Wan Azmi) requiring them to disgorge ill-gotten profits arising from the insider trading of Bernas shares.
This resulted in the recovery of RM2.08 million from KL City Securities-twice the amount gained by KL City Securities from the insider trading of Bernas shares. KL City Securities and Wan Azmi were also required to pay civil penalties of RM300,000 and RM150,000 respectively.
In addition to the 275 investors who have been compensated from the disgorged profits, the SC is calling on 41 other investors to claim their entitlement under the compensation scheme within 30 days from 24 August 2006, after which the scheme will be wound up.
The 41 investors whose names are listed here may make their claim by contacting KPMG Corporate Services Sdn Bhd, the distribution agent for the compensation scheme.