Kuala Lumpur, 13 March 2018
SC Charges Two Former Investment Bankers and Another Individual with Insider Trading
The Securities Commission Malaysia (SC) today charged two former senior investment bankers and another individual at the Kuala Lumpur Sessions Court with insider trading of Hirotako Holdings Bhd (Hirotako) shares.
Tan Giap How, 63, was charged with communicating inside information to Ng Ee Fang between 25 September 2011 and 20 October 2011, an offence under section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA). Tan was the Regional Head of Equity Markets at AmInvestment Bank Bhd (AmInvest), while Ng was the Head of Equity Derivatives at AmInvest, at the material time.
The SC alleged that the material non-public information referred to in the charge was in relation to the proposed take-over offer by MBM Resources Bhd to acquire all voting shares and outstanding warrants in Hirotako, which was announced to Bursa Malaysia on 27 October 2011. Hirotako, a manufacturer of automotive safety restraints and acoustics, was at the time listed on the Main Board of Bursa Malaysia.
Ng, 45, was charged with four counts of insider trading for acquiring a total of 1,000,000 units of Hirotako shares while in possession of the same information. The offence was allegedly committed between 14 October 2011 and 20 October 2011 and falls under section 188(2)(a) of the CMSA.
The SC alleged that the shares were acquired through the account belonging to Ng’s husband, Daniel Yong Chen-I. Yong, 47, was charged for allowing Ng to effect the acquisition of the Hirotako shares through his account, an offence under section 29A of the Securities Industry (Central Depositories) Act 1991 (SICDA).
All three claimed trial to the respective charges preferred against them. Tan was granted bail of RM150,000 with one surety, and was ordered to surrender his passport to court. Ng was granted bail of RM450,000 with one surety, and Yong’s bail was set at RM350,000 with one surety. The court also ordered Ng and Yong to report to the SC Investigating Officer on a monthly basis.
Both offences under sections 188(2)(a) and 188(3)(a) of the CMSA are punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million. The offence under section 29A of the SICDA is punishable with a fine not exceeding RM1 million and an imprisonment term not exceeding five years.
SECURITIES COMMISSION MALAYSIA