Bursa Malaysia Securities Berhad (Bursa Securities) has publicly reprimanded, imposed a fine of RM10,500 and suspended Chin Khuen Sinn (Chin) for three weeks as a Registered Person, including from trading on or through the stock market of Bursa Malaysia as a Dealer’s Representative (DR), for engaging in intraday shortselling activities in a client’s account. Chin is also required to undergo training on the conduct or professionalism of DRs and market offences.
Chin, who was at the material time of the breach a Commissioned DR of Maybank Investment Bank Berhad at its Ipoh branch office, contravened and/or triggered the provisions of Rules 401.1(1)(f), 404.3(1)(a) & (b) and 1302.1(1)(g) of the Rules of Bursa Securities.
Bursa Securities views misconducts that compromise the integrity of the market and the protection of clients’ interests seriously and will not tolerate any unlawful trading practices. Registered Persons, including DRs, must undertake trading activities in strict compliance with the Rules of Bursa Securities, including acting with integrity in maintaining market confidence and upholding the interest of the client. Appropriate actions will be taken against anyone who engages in such misconducts, including suspending or striking off a Registered Person from the Register or imposing a fine that commensurate with the severity of the breach.
BACKGROUND
The finding of the breach and the imposition of the sanctions on Chin were made pursuant to Rule 1301.2 of the Rules of Bursa Securities upon completion of due process and after taking into consideration all facts and circumstances, including that:-
- Chin had undertaken the sales of securities for a client in numerous instances involving several counters when the client’s account did not have the requisite tradable balance of the securities for the sales transactions.
- Arising from the intraday shortselling activities, there were gains made in his client’s account.
- Chin admitted that he carried out such activities to generate some commission.
- As a DR, Chin must, amongst others:
- refrain from engaging in unlawful practices which involved intraday shortselling activities;
- observe professional standards of integrity and fair dealing;
- act honestly and in the best interest of his client; and
- carry out his duties efficiently and exercise proper skill, care and diligence so as to ensure that he did not enter sell orders for the shares that were not available in his client’s account.
