KUALA LUMPUR: The High Court today ordered that former Perbadanan Kemajuan Negeri Perak (PKNP) and Perak Corporation Bhd (PCB) chief executive officer Datuk Aminuddin Md Desa pay the Securities Commision Malaysia (SC) RM3.56 million in a civil suit claim for insider trading.
The court ruled that the SC successfully proved its claim in a civil suit against Aminuddin for insider trading.
Judge Wan Muhammad Amin Wan Yahya found Aminuddin had breached section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA) by acquiring 1,412,700 PCB shares between October 2013 and January 2014 while in possession of inside information.
The inside information was on PKNP's proposed privatisation of PCB.
In allowing the SC's claim, Aminuddin was ordered to pay to the SC a sum of RM2.46 million, being an amount equal to three times the profits gained as a result of the insider trading.
In addition, Aminuddin is also required to pay to the SC a civil penalty of RM1 million and costs of RM100,000.
In addition to the above, SC said the High Court ordered Aminuddin to be barred from being appointed as a chief executive officer or director or being involved in the management of a public listed company (PLC) and/or a subsidiary of a PLC for five years, beginning from the court judgment on Feb 13, 2024.
He was also barred from trading in any securities on Bursa Malaysia for five years beginning from the court judgment.
"Insider trading is a serious misconduct in the capital market. The continuous enforcement by the SC demonstrates its commitment to address misconduct that abuses the integrity of the capital markets," it added. Ends