89E. Prohibited conduct of person in possession of inside information.

(1)

A person is an “insider” if that person-

(a)

possesses information that is not generally available which on becoming generally available a reasonable person would expect it to have a material effect on the price or the value of securities; and

(b)

knows or ought reasonably to know that the information is not generally available.

(2)

An insider shall not, whether as principal or agent, in respect of any securities to which information in subsection (1) relates-

(a)

acquire or dispose of, or enter into an agreement for or with a view to the acquisition or disposal of such securities; or

(b)

procure, directly or indirectly, an acquisition or disposal of, or the entering into an agreement for or with a view to the acquisition or disposal of such securities.

(3)

Where trading in the securities to which the information in subsection (1) relates is permitted on a stock market of a stock exchange, the insider shall not, directly or indirectly, communicate the information referred to in subsection (1), or cause such information to be communicated, to another person, if the insider knows, or ought reasonably to know, that the other person would or would tend to-

(a)

acquire, dispose of, or enter into an agreement with a view to the acquisition or disposal of, any securities to which the information in subsection (1) relates; or

(b)

procure a third person to acquire, dispose of or enter into an agreement with a view to the acquisition or disposal of, any securities to which the information in subsection (1) relates.

(4)

A person who contravenes or fails to comply with subsection (2) or (3) commits an offence and is liable on conviction to a fine of not less than RM1 million and to imprisonment for a term not exceeding 10 years.

(5)

The Minister may prescribe, and make regulations in respect of, persons, or transactions relating to securities, or any particular class, category or description of persons, or any particular class, category or description of transactions relating to securities, to whom or which this section does not apply.


[Am. Act A1017:s.25]