Former Deputy Executive Chairman Sentenced to Five Years Jail and RM9 Million Fine for Insider Trading
11 September 2019   |   Kuala Lumpur
The Kuala Lumpur Sessions Court today sentenced a former deputy executive chairman of a public listed company to a five-year jail term and a fine of RM9 million for insider trading offences, after a full trial with 24 witnesses having testified for both the prosecution and defence

Dato’ Ramesh a/l Rajaratnam, 55, former executive deputy chairman of Malaysian Merchant Marine Bhd (MMM), was found to have disposed 10,200,800 of MMM shares while in possession of material non-public information in relation to the proposed downgrade by the Malaysian Rating Corporation Bhd (MARC) on the credit rating of MMM’s Al-Bai Bithaman Ajil Islamic Debt Securities, which was made public by MARC on 4 February 2010.

Ramesh was also found to be in possession of material non-public information relating to the classification of MMM as a PN17 company. The disposals of MMM shares were made on 11 January 2010, 19 February 2010 and 22 February 2010.

Insider trading is an offence under section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA) and carries a punishment of an imprisonment term not exceeding 10 years and a fine of not less than RM1 million.

Judge Tuan Azman Ahmad convicted Ramesh on all charges this morning but had allowed a stay of the jail sentence, pending Ramesh’s appeal. The Judge however ordered for the total fine of RM9 million to be paid by end of today, failing which Ramesh is to serve the default jail term of nine years.
SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):
  1. Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
  2. Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
  3. Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group 
  4. Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC
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