SC Charges Former MD of Johor Land Bhd and Businessman for Insider Trading
22 February 2018   |   Kuala Lumpur
The Securities Commission Malaysia (SC) today charged the former Managing Director of Johor Land Bhd (JLand) with insider trading under section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA). A.F.M Shafiqul Hafiz, 71, was charged at the Kuala Lumpur Sessions Court with communicating material non-public information to one Dato’ Harjit Singh a/l Gurdev Singh between 22 March 2009 and 6 April 2009.
The SC alleged that the inside information referred to in the charge was in relation to the proposed privatisation of JLand via a Voluntary General Offer at a price of RM1.55 per JLand share which was announced to Bursa Malaysia on 13 April 2009.

Harjit, 60, was separately charged with three counts of insider trading under section 188(2)(a) of the CMSA of acquiring a total of 346,500 units of JLand shares between 23 March 2009 and 6 April 2009 while in possession of material non-public information. The shares were acquired through HSBC Private Bank Singapore’s account for Star Honour Limited, a BVI incorporated company.

The charge against Shafiqul was read out before Sessions Court Judge Azman Ahmad while Harjit was charged before Sessions Court Judge Hasbullah Adam. Both claimed trial to the respective charges preferred against them. Shafiqul and Harjit were granted bail of RM250,000 with two sureties, and RM180,000 with two sureties, respectively. They were also ordered to surrender their passports.

The offence of communicating material non-public information under section 188(3)(a) of the CMSA is punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million. The offence of acquiring shares while in possession of inside information is punishable with the same penalty.


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