The High Court acquits ex-MMM deputy chairman Ramesh Rajaratnam, ruling share sales were for company survival, not based on inside information.
KUALA LUMPUR: The High Court has acquitted former Malaysian Merchant Marine Berhad (MMM) deputy executive chairman Datuk Ramesh Rajaratnam of an insider trading charge.
Judge K. Muniandy allowed Ramesh’s appeal to set aside his 2019 conviction, five-year prison sentence and RM3 million fine from the Sessions Court.
In his judgment, Muniandy ruled the sale of MMM shares in January 2010 was not motivated by inside information.
He stated the transaction followed a pre-determined plan or an announced corporate strategy.
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The judge noted the market was already aware of MMM’s financial difficulties by December 2009, including a potential bond suspension.
He added that Ramesh himself had suffered personal losses from the company’s situation.
“The court is satisfied that the purpose of the transaction was not to make a profit or to avoid a loss, but to ensure the survival of the company,” Muniandy said.
The proceeds from the share sale were used to meet the company’s expenses, according to the judgment.
Ramesh was originally charged in the Sessions Court on April 29, 2015, with three counts of insider trading.
The first charge alleged he disposed of 5 million MMM shares on Jan 11, 2010, while possessing material non-public information about a proposed credit rating downgrade.
The second and third charges involved the disposal of 5,200,800 shares in February 2010 while possessing information about MMM’s PN17 classification.
The Sessions Court convicted him on all three charges in September 2019, imposing a five-year jail term and RM3 million fine for each.
The jail sentences were to run concurrently.
Ramesh filed an appeal, and the High Court acquitted him of all charges on May 20, 2021.
The Securities Commission Malaysia (SC) then appealed against that acquittal.
On May 6, 2024, the Court of Appeal set aside the High Court’s acquittal on the first charge and reinstated the conviction and sentence.
It ordered the case remitted to the High Court for a rehearing before a different judge.
The Court of Appeal maintained bail at RM200,000 with one surety and ordered Ramesh to surrender his passport.
Judge Muniandy’s latest ruling concludes the rehearing, resulting in a full acquittal. – Bernama
