Page 211 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

Table 9
Regulatory settlements in 2018

No. Insider trading Offender(s) Description

1. Insider trading Tan Eng Kean On 6 April 2018, Tan EK entered into a settlement with the SC
(Tan EK) in the sum of RM56,900.00 when he agreed without admission
or denial of liability to settle a claim that the SC was proposing
to institute against him for acquiring 5,000 units of PacificMas
Bhd (PacMas) shares in his account while in possession of inside
information contrary to section 188(2) of the CMSA.

The inside information was in relation to a proposed conditional
take-over offer by OSPL Holdings Sdn Bhd (OSPL) to acquire all
the voting shares in PacMas not already owned by OSPL which
was announced on 4 January 2008. Additionally, a civil penalty of
RM50,000 was imposed by the SC.

The settlement was reached following a letter of demand sent
by the SC pursuant to its civil enforcement powers under the
securities laws, where the sum that Tan EK was required to
disgorge was equivalent to 3 times the difference between the
price at which the shares were acquired and the price at which
the shares would have been likely to have been acquired at the
time of the acquisition, if the information had been generally
available. The monies recovered will be applied in accordance with
section 201(7) of the CMSA.

2. Insider trading Tan Sri Abdul On 20 July 2018, Tan Sri Abdul Rahman entered into a settlement
Rahman Omar (Tan with the SC in the sum of RM69,144.00 when he agreed
Sri Abdul Rahman) without admission or denial of liability to settle a claim that the
SC was proposing to institute against him for acquiring Edaran
Otomobil Nasional Bhd (EON) shares while in possession of inside
information, contrary to section 89E(2) of SIA.
The inside information was in relation to EON’s announcement
to Bursa Malaysia Bhd of a proposed special gross dividend of
137 cent per share less 27% tax in respect of the financial year
ended 31 December 2006. Tan Sri Abdul Rahman had acquired
100,000 units of EON shares on 23 February 2007, prior to the
announcement.

The settlement was reached following a letter of demand sent
by the SC pursuant to its civil enforcement powers under the
securities law, where the sum that Tan Sri Abdul Rahman was
required to disgorge was equivalent to 3 times the difference
between the price at which the shares were acquired and the
price at which the shares would have been likely to have been
acquired at the time of the acquisition, if the information had
been generally available. The monies recovered have been applied
in accordance with section 90A(7) of the SIA.

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