KUALA LUMPUR: Securities Commission Malaysia (SC) charged two individuals with insider trading offences under section 89E(2)(a) of Securities Industry Act 1983 yesterday.
Goh Keng Huat and his wife Wee Siew Ling were arrested in Singapore on Oct 8 with the assistance of the Royal Malaysian Police and the Singapore Police Force.
Goh was charged at the Kuala Lumpur Sessions Court for acquiring 851,600 units of Road Builder Holdings (M) Bhd (RBH) shares while in possession of material, non-public information between Sept 4, 2006 and Oct 16, 2006. Goh was at the material time the Head of Equity Markets, Aseambankers Malaysia Bhd (now known as Maybank Investment Bank Bhd).
Goh, who faces a total of 10 charges, was alleged to have acquired the RBH shares via the trading accounts belonging to Wee. SC also preferred charges against Wee for abetting Goh by allowing her accounts to be used by Goh for the purpose of acquiring the said shares.
Both claimed trial against all the charges. Goh and Wee were granted bail of RM500,000 with two sureties respectively. The case has been fixed for mention on Dec 6.
SC alleged that the non-public information referred to in all the charges related to the proposed acquisition of all assets and liabilities of RBH by IJM Corporation Bhd at a total indicative purchase consideration of approximately RM1.56 billion.
Insider trading is punishable with imprisonment term up to 10 years and a fine of not less than RM1 million. A person who abets another individual in the commission of the offence is also liable to the same punishment.