SC Charges Former Deputy Chairman of MMM with Insider Trading Offences

29 April 2015 | Kuala Lumpur

The Securities Commission Malaysia (SC) today charged the former Executive Deputy Chairman of Malaysian Merchant Marine Bhd (MMM) Dato’ Ramesh a/l Rajaratnam with three insider trading charges under the Capital Markets and Services Act 2007. MMM was a company that was previously listed on Bursa Malaysia Securities Bhd.

Ramesh was charged at the Kuala Lumpur Sessions Court with three counts of disposing a total of 10,200,800 MMM shares whilst in possession of non-public information. It was alleged that the disposals of the MMM shares were made on 11 January 2010, 19 February 2010 and 22 February 2010.

The charges were preferred before Sessions Court Judge Norsharidah Awang and the accused claimed trial to all three charges. Justice Norsharidah fixed bail at RM200,000 and ordered the accused to surrender his international passport to the court.

With respect to the first charge, the SC alleged that the non-public information related to the proposed downgrade by Malaysian Rating Corporation Berhad (MARC) of its credit rating on MMM’s RM120 million Al-Bai’ Bithaman Ajil Islamic Debt Securities (BaIDS) from the category of investment grade to non-investment grade.

With regard to the second and third charges, the non-public information related to the classification of MMM as a PN17 company.

The offences carry a punishment of an imprisonment term not exceeding 10 years and a fine of not less than RM1 million.

SECURITIES COMMISSION MALAYSIA