Kuala Lumpur, 20 July 2012
SC charges senior corporate lawyer Dato’ E Sreesanthan for insider trading
The Securities Commission (SC) today charged Dato’ Sreesanthan Eliathamby, a corporate lawyer who sits on the boards of several public listed companies, with seven counts of insider trading. Dato’ Sreesanthan was charged with insider trading in the shares of four listed companies between 2006 and 2008.
The charges involved three counts of insider trading in the shares of Sime Darby Bhd in 2006, ahead of the acquisition by Synergy Drive of companies within the Sime Darby, Guthrie and Golden Hope groups. The two counts of insider trading in the shares of Maxis Communications Bhd, which were preferred under the Securities Industry Act 1983, were alleged to have taken place during the privatisation of Maxis in 2007.
Two other charges were preferred for insider trading under section 188(2) of the Capital Markets and Services Act 2007 involving the shares of UEM World Bhd and VADS Bhd in 2008. Dato’ Sreesanthan’s trades in UEM World were said to have been made with his knowledge of the corporate restructuring of the UEM group, while his trades in VADS allegedly involved his knowledge relating to VADS’s proposed privatisation. The offences under both Acts carry a punishment of a fine of not less than RM1 million and imprisonment of a term not exceeding 10 years.
Dato’ Sreesanthan claimed trial to the charges preferred. Sessions Court judge, Dato’ Jagjit Singh a/l Bant Singh who set bail at RM300,000 with one surety also required Dato’ Sreesanthan to surrender his passport to the court.
The SC has been proactively pursuing market misconduct cases and will continue to be vigilant and take whatever action necessary to protect investors and to maintain a fair and orderly capital market.
SECURITIES COMMISSION MALAYSIA