SC charges 3 individuals for insider trading
Securities Commission Malaysia

By FARA AISYAH / Graphic By TMR

The Securities Commission Malaysia (SC) has charged Tan Giap How and a couple, Ng Ee Fang and Daniel Yong Chen-I, with insider trading of Hirotako Holdings Bhd shares at the Kuala Lumpur Sessions Court yesterday.

Tan, the former regional head of equity markets at AmInvestment Bank Bhd (AmInvest), was charged with communicating inside information to Ng between Sept 25, 2011, and Oct 20, 2011, an offence under Section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA).

The SC alleged that the material non-public information referred to in the charge was in relation to the proposed take-over offer by MBM Resources Bhd to acquire all voting shares and outstanding warrants in Hirotako, which was announced to Bursa Malaysia on Oct 27, 2011.

Ng, who was AmInvest’s head of equity derivatives at the time, was charged with four counts of insider trading which amounted to a total of one million units of Hirotako shares.

The offence, which falls under Section 188(2)(a) of the CMSA, was allegedly committed between Oct 14 and Oct 20, 2011.

Ng’s husband, Yong, was also charged for allowing Ng to effect the acquisition of the Hirotako shares through his account — an offence under Section 29A of the Securities Industry (Central Depositories) Act 1991.