SC sues 3 for insider trading of Axis shares

PETALING JAYA: The Securities Commission Malaysia (SC) has filed a civil suit at the Kuala Lumpur High Court against three individuals for insider trading involving the shares of Axis Incorporation Bhd.
SC said in a statement yesterday that the suit was filed on March 13, 2017 against Koh Tee Jin, Koh Thiam Seong and Koh Hui Sim.
According to SC, Tee Jin had breached section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA) when he communicated material non-public information to Thiam Seong and Hui Sim, when he knew or ought to have reasonably known that the two individuals would or would tend to dispose of the shares in Axis. At the material time, Tee Jin was one of the directors of Axis.
SC claimed that the material non-public information referred to in the action, related to unresolved issues in relation to Axis’ financial statements for financial year ended March 31, 2008. The announcement relating to the said information was made on June 30, 2008.
In the fillings, SC also alleged that Thiam Seong and Hui Sim had, in breach of section 188(2)(a) of the CMSA, disposed of a total 224,000 and 739,800 of Axis shares respectively between June 9, 2008 and June 30, 2008 while in possession of the said material non-public information.
SC is seeking from the defendants a disgorgement of three times the profits made by Thiam Seong and Hui Sim, whom the SC alleged had traded while in possession of the inside information.
It is also claiming a civil penalty of RM1 million from each of the three defendants and an order that the defendants be barred from being a director of any public-listed company for a period of five years.