corporate

SC sues Yu Kuan Chon for Shangri-La share manipulation, seeks over RM26mil payments

KUALA LUMPUR: The Securities Commission (SC) has sued Datuk Yu Kuan Chon for market rigging and manipulation breaches involving shares in Shangri-La Hotels (M) Bhd.

According to the SC, Yu had traded Shangri-La shares between March 1, 2018 and July 24, 2018 in a manner that caused a surge in its traded volume and share price.

IYu had allegedly traded and transacted in Shangri-La shares using 15 central depository system (CDS) accounts during the material period. 

"His trades represented approximately 81.9 per cent of the total volume of Shangri-La shares traded on the market during this period," it said in a statement. 

The SC claimed that Yu had engaged in manipulative activities in the trading of Shangri-La dhares, and that hid trading activities were in breach of sections 175(1) and/or 176(1) of the Capital Markets and Services Act 2007.

The SC is seeking, among others, a disgorgement of RM26.57 million, which is three times the profits alleged to have been made by Yu as a result of the breach, and a civil penalty of RM1 million.

He is also to be barred from becoming a chief executive or director or being involved in the management of any public company or its subsidiaries for five years as well trading on the stock exchange for the same period.

The SC said market manipulation undermines the integrity and transparency of capital markets, which can erode investor confidence and disrupt market efficiency.

"The SC views market manipulation very seriously and will continue to maintain a strong enforcement stance to protect investors and uphold the integrity of the capital markets," it added.

Most Popular
Related Article
Says Stories