KUALA LUMPUR – The Securities Commission Malaysia (SC) has won an insider trading civil suit against Ban Seng Plastic Industries & Assembly Sdn Bhd’s managing director Toh Kai Fatt, who was ordered to pay the SC a total of RM2.71 million.
The SC said the high court had on April 13 found that the commission had successfully proven its claim of insider trading against Toh.
“Justice Ong Chee Kwan ordered Toh to pay the SC RM2.36 million, the amount equal to three times the profits gained as a result of the insider trading,” it said in a statement.
Toh, 52, is also required to pay a civil penalty of RM250,000 and a cost of RM100,000 to the SC.
The high court found that Toh had breached Section 188(2)(a) of the Capital Markets and Services Act 2007, SC said. The suit was filed in 2021.
In addition to this, Toh is barred from being appointed as a director of a public listed company and also restrained from trading in any securities on Bursa Malaysia for a period of five years beginning from the court judgment on April 13.
The breach occurred when Toh acquired 974,000 shares of HPI Resources Bhd (HPI) between March and June 2011, while in possession of material non-public information.
The said information was in relation to Oji Paper Co. Ltd’s proposed acquisition of HPI.
“Insider trading is a major concern, and SC will continue to monitor and take action against any suspicious conduct to protect the integrity of the capital market,” SC added.
“The judgment sends a strong and clear message to the public that insider trading is a serious offence and that using inside information for personal gain will not be tolerated,” it said. – Bernama, April 14, 2023
