Two former RHB dealer reps fined and suspended for short selling

BURSA Malaysia Securities has taken enforcement actions against two dealer’s representatives (DRs) for breaches of the Rules of Bursa Malaysia Securities for engaging in short-selling activities in the accounts of three clients. 

It said in a statement yesterday that it had publicly reprimanded and fined Mooi Weng Hou for RM94,500 and Kwan Chun Han for RM25,000 by engaging in short-selling activities.

Mooi was also sanctioned to six months suspension and is required to undergo a mandatory training on conduct of DRs or market offences.

Kwan on the other hand, was sanctioned to three months suspension and is also required to undergo a mandatory training.

Previously, Mooi and Kwan were commissioned DRs at RHB Investment Bank Bhd’s Pandan Indah branch office when the short-selling circulars incident occurred.

Bursa Malaysia said it took the misconduct that jeopardises the market’s integrity seriously and would not accept any illegal trading practices.

“Registered persons including DRs, must undertake trading activities in strict compliance with the rules of Bursa Malaysia Securities and relevant laws including acting with integrity in maintaining market confidence.

“Bursa Malaysia Securities will not hesitate to take appropriate actions against anyone who engages or participates in or assists or facilitates such misconducts or fails to carry out their duties with utmost integrity, including suspending or striking off a registered person from the register and imposing a fine that commensurate with the severity of the breach,” the exchange operator said.

Bursa Malaysia said it viewed misconduct that compromised the integrity of the market seriously and would not tolerate any unlawful trading practices.

Bursa Malaysia said Mooi had engaged in the unpermitted selling activities in the trading accounts of his three clients and instructed Kwan to execute prohibited short sales involving substantial volume in Anzo Holdings Bhd, AT Systematization Bhd, Bioalpha Holdings Bhd, Careplus Group Bhd, Comfort Gloves Bhd, Waja Konsortium Bhd, PDZ Holdings Bhd, Vsolar Group Bhd and CW Hang Seng Index.

These nine counters were not Approved Securities and hence, short selling, including Intraday Short Selling (IDSS) was prohibited in these counters (Prohibited Short Sales); and Mooi had executed and instructed Kwan to execute numerous instances of IDSS trades involving substantial volume in two counters, namely Supermax Corp Bhd and Top Glove Corp Bhd which were Approved Securities when IDSS was suspended by the Exchange.

“Mooi had played a primary role as he had proposed short selling as a trading strategy to his three clients and instructed Kwan to proceed regardless of RHB Investment Bank’s System Alert and Kwan’s alert that the orders amounted to short selling activities; while, Kwan had played a secondary role by assisting Moo’s breaches and had acted as a mere order taker,” added Bursa Malaysia. — TMR / pic BERNAMA