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The Securities Commission Malaysia (SC) today charged a director of Transocean Holdings Berhad (THB) and two other individuals with insider trading. Tan Swee Hock, 62, was charged at the Kuala Lumpur Sessions Court for acquiring 632,700 units of Transocean Holdings Berhad shares between 20 August 2009 and 6 November 2009 whilst in possession of material non-public information.
The SC alleged that the material non-public information referred to in the charges relates to the proposed take-over offer by Kumpulan Kenderaan Malaysia Berhad of THB shares. The take-over offer was announced to Bursa Malaysia on 6 November 2009.
Tan, who faces a total of 28 charges, is said to have acquired the THB shares through accounts belonging to two individuals, Chan Sze Yeng and Yap Lee Lee. Chan and another individual, Cheng Seng Chow were both charged for abetting Tan in the commission of the offences under section 370(c) of the Capital Markets and Services Act 2007 (CMSA).
The charges against Tan, Chan and Cheng were read out before Sessions Court Judge Abdul Rashid bin Daud. Tan, Chan and Cheng were each granted bail of RM200,000 with one surety. They were also ordered to surrender their passports. All claimed trial to the respective charges preferred against them.
The offence of insider trading under section 188(2) of the CMSA is punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million.
