KUALA LUMPUR: Two former investment bankers from AmInvestment Bank Bhd (AmInvest) are facing a 10-year jail term and a fine of not less than RM1 million for the insider trading of Hirotako Holdings Bhd shares in 2011.
In a statement today, the Securities Commission (SC) charged AmInvest’s former regional head of equity markets Tan Giap How, 63, with communicating inside information to AmInvest’s former head of equity derivatives Ng Ee Fang.
The offence which comes under section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA) was allegedly taken place between September 25 2011 and October 20 2011.
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 October 27 2011.
Hirotako, a manufacturer of automotive safety restraints and acoustics, was at the time listed on the Main Board of Bursa Malaysia.
Ng, who was charged with four counts of insider trading for acquiring a total of one million Hirotako shares while in possession of the same information, had acquired the shares through her husband’s, Daniel Yong Chen-I account.
The offence was allegedly committed between October 14 2011 and October 20 2011 and falls under section 188(2)(a) of the CMSA.
For allowing Ng to use his account, Yongn was charged under section 29A of the Securities Industry (Central Depositories) Act 1991 (SICDA).
All three claimed trial to the respective charges preferred against them, with Tan granted a bail of RM150,000 with one surety, and was ordered to surrender his passport to court.
Ng was granted bail of RM450,000 with one surety, while Yong’s bail was set at RM350,000 with one surety.
The court also ordered Ng and Yong to report to the SC Investigating Officer on a monthly basis.
Both offences under sections 188(2)(a) and 188(3)(a) of the CMSA are punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million.
The offence under section 29A of the SICDA is punishable with a fine not exceeding RM1 million and an imprisonment term not exceeding five years.
The case was heard at the Kuala Lumpur Sessions Court.