SC Files Civil Suit Against Three Individuals for Insider Trading

20 March 2017 | Kuala Lumpur

Securities Commission Malaysia (SC) has filed a civil suit at the Kuala Lumpur High Court against three individuals – namely Koh Tee Jin, Koh Thiam Seong and Koh Hui Sim – for insider trading involving the shares of Axis Incorporation Berhad (Axis).

In the suit filed on 13 March 2017, SC claimed that Koh Tee Jin had breached section 188 (3)(a) of the Capital Markets and Services Act 2007 (CMSA) when he communicated material non-public information to Koh Thiam Seong and Koh Hui Sim when he knew or ought to have reasonably known that Koh Thiam Seong and Koh Hui Sim would or would tend to dispose of the shares in Axis. At the material time, Koh Tee Jin was one of the directors of Axis.

SC claimed that the material non-public information referred to in the action related to unresolved issues in relation to Axis’ financial statements for financial year ended 31 March 2008. The announcement relating to the said information was made on 30 June 2008.

In the fillings, SC also alleged that Koh Thiam Seong and Koh Hui Sim had, in breach of section 188(2)(a) of the CMSA, disposed a total of a total of 224,000 and 739,800 of Axis shares respectively between 9 June 2008 and 30 June 2008 whilst in possession of the said material non-public information.

SC is seeking from the defendants a disgorgement of three times the profits made by Koh Thiam Seong and Koh Hui Sim, whom the SC alleged had traded while in possession of the inside information. SC is also claiming a civil penalty of RM1 million from each of the three defendants and an order that the defendants be barred from being a director of any public-listed company for a period of five years.

SECURITIES COMMISSION MALAYSIA