KUALA LUMPUR – The Securities Commission (SC) warns it will take action against any listed entity that disseminates false or misleading information in a bid to induce trading or influence share prices.
This comes after Mestron Holdings Bhd, a company specialising in manufacturing steel poles for streetlights, filed potentially misleading statements with Bursa Malaysia at the end of last month.
The company had initially said it had been given approval by the Health Ministry to distribute Covid-19 vaccines in Malaysia, before backtracking two days later.
In a statement to The Vibes yesterday, the SC said all listed entities, their directors and chief executive officers must exercise care and diligence when making any material announcement.
“The SC views the dissemination of false or misleading information as a serious breach under securities laws, and will not hesitate to act against any person found to have been involved in perpetrating the breach.”
The commission said those found guilty of offences likely to induce the trading of shares or to influence share prices could face up to 10 years in prison and be fined not less than RM1 million.
The SC is the sole regulatory agency for the regulation and development of capital markets, and has direct responsibility for supervising and monitoring the activities of market institutions.
In a Bursa filing on January 29, Mestron managing director Por Teong Eng wrote that the company had obtained clearance from the ministry to commence negotiations with any Chinese company for the importation, distribution, sale and application of Covid-19 vaccines in Malaysia.
However, on January 30, Health Minister Datuk Seri Dr Adham Baba denied issuing any approval for Mestron to distribute vaccines here.
The company then reiterated it had obtained a clearance letter “to commence negotiation and cooperation with any company from China”.
The next day, in a statement later filed with Bursa, Mestron clarified that it did not obtain any approval or clearance letter from the ministry to purchase or distribute vaccines.
“Mestron’s intention is to explore and venture into the vaccine distribution business by partnering with Zhongyu Yexing (Chengdu) Industrial Co, Ltd,” it had said. – The Vibes, February 5, 2021
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